Emergency services were called to Mount Hall Road near Clyde Circuit just before 8.30am to reports a boy was riding his bike when he was hit by a Hunter Valley Buses vehicle, which was full of students on their way to school.

Police, paramedics, Fire and Rescue and the speciality rescue unit from Port Stephens SES raced to the scene.

"A 15-year-old teenager was trapped under a bus," Inspector Matt Hawke from NSW Ambulance said.

"NSW Ambulance responded with multiple crews and initially the Westpac Helicopter, which was later called off.

"Despite paramedics best efforts, the patient could not be saved."

Police confirmed that the 15-year-old Irrawang High student died at the scene.

"Sadly there was not a lot we could do," an SES spokesman said after attending the tragic scene.

A resident near the intersection of Clyde Circuit and Mount Hall Road, who asked not to be named, said he heard a bang when the incident took place.

He said something like it had not happened in the decade he had lived on the street.

Inspector Hawke said witnesses and first responders would be offered support following the incident.

"It was an incredibly distressing scene for emergency services and bystanders who witnessed the incident," he said.

"Ambulance chaplains and clinical psychologists also responded supporting witnesses and emergency services personnel.

"It is a tough day for everybody involved."

An Irrawang High spokesman confirmed the 15-year-old boy was a Year 10 student at the school.

He said the school extended its "sincere condolences to the family and many friends of the student".

"Counselling support is in place at the school and other local schools for students and staff who may have witnessed or been affected by the incident," he said.

"The school has extended its appreciation for the care and compassion of its parents and the broader school community at this very challenging time."

The spokesman said the school would not comment further at this stage, given the nature of the incident and the fact that police were investigating.

Port Stephens MP Kate Washington wrote on social media on Tuesday morning that news of the incident was devastating.

"Raymond Terrace's heart is breaking right now," she wrote.

Road closures were put in place on Mount Hall Road between Closebourne and Banks streets. A crime scene was established and police were expected to remain on scene for some time.

The bus was taken for further examination and the 41-year-old man driving the bus will undergo mandatory testing. Inquiries continue. Hunter Valley Buses has been contacted for comment.

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