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All passengers, the two pilots and three flight attendants on the crashed Airbus are off the plane having been ferried to safety.
The Australian consulate in New York is working to confirm if any Australians were on board, a Department of Foreign Affairs spokesperson said.
National Air Traffic Controllers Union spokesman Doug Church said the Airbus 320 reported bird strikes about 30 to 45 seconds after takeoff , The Associated Press reports.
The male pilot said he saw an airport below and asked to land there. The air traffic controller advised that the airport was Teterboro in New Jersey and gave the pilot the clearance to land there but the plane did not make it there.
The pilot did a "masterful job" of landing the plane, New York Mayor Michael Bloomberg said.
"I had a long conversation with the pilot. He walked the plane twice after everybody else was off. And tried to verify that there was nobody else onboard. And assures us there were not.," Mr Bloomberg said.
Passing commuter Janis Krums photographed passengers evacuating the downed plane and posted it to Twitter.
"There's a plane in the Hudson. I'm on the ferry going to pick up the people. Crazy," Mr Krums said on his Twitter stream.
More: How the story was covered on Twitter and Flickr
Passengers were seen standing on the wings of the plane to stay above the water that was about minus 6oC.
The plane was sinking in the icy waters and rescue crews opened the doors and were pulling passengers from the plane.
The US Airways Flight 1549 may have been hit by birds before it crashed in the river near 48th Street in New York City .
The plane flying from New York's LaGuardia airport to Charlotte, North Carolina had only been in the air for about three minutes before it went down about 3.26pm New York time (7.26am AEDT).
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