A STUDENT has been killed after being hit by a bus outside a school near Newcastle.

Police were called to the crash outside Irrawang High School gates at Raymond Terrace about 8.30am today.

It is understood the 17-year-old boy, Brennan Nean, was in Year 10 and other students, who witnessed him being dragged under the bus, are traumatised by the incident.

Initial reports suggest the crash did not happen at a pedestrian crossing and he was riding a bicycle.

Addressing the media, NSW Police Sergeant Paul Doherty said the incident was very challenging for all emergency services involved.

"We have notified family. They have all been notified throughout the day," he said.

His comments follow a NSW Police releasing the following statement earlier today:

"At 8.30am this morning a bus has struck a pedestrian on Mount Hall Rd, Raymond Terrace.

"The pedestrian has died at the scene.

"Road closures are in place on Mount Hall Rd between Closebourne Wy and Banks St.

"A crime scene has been established and enquiries continue."

NSW Ambulance Inspector Matt Hawke said Westpac Helicopter was called but later called off.

"It was quite a confronting scene for emergency services and bystanders who witnessed the incident," he said.

"Unfortunately despite the best efforts of paramedics the patient could not be saved.

"I believe the teenager was riding a bicycle.

"The school bus was full of schoolchildren on its way to school and the driver was conveyed to hospital for assessment."

Resident Peter McMahon, who lives a couple of streets away, said the incident came as a shock as it could have been somebody in their street.

"There's a lot of nice young kids around here, particularly going to the high school. It's shaken everyone.

"You get a lot of kids going to school - some walking, some getting on and off buses - and at that hour of the morning it's bumper to bumper."