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Malaysia Airlines plane arrives at Kuala Lumpur International Airport in Sepang, Malaysia Reuters

A Malaysian Airlines (MAS) flight from Sydney to Kuala Lumpur was diverted to a remote town in Australia's Northern Territory due to "technical reasons".

The flight experienced a technical fault on one of the aircraft's engines, the airlines said in a statement.

Malaysia Airlines' Flight MH122 safely landed nearly 200 passengers onboard in Alice Springs Airport at 5.48pm local time.

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MH122 departed Sydney Airport at 1.06pm and was scheduled to arrive Kuala Lumpur at 6.30pm the same day.

"Safety was not at any time compromised and the commanding captain decided to divert the flight for technical assistance," the airline said in a statement on its website.

All affected passengers have been given hotel accommodation, meals and transportation, the statement said.

Passengers will be transferred from Alice Springs to Kuala Lumpur on MH148/ January 19. The flight is scheduled to depart Alice Springs at 5.45pm and is expected to arrive in Kuala Lumpur at 9.50pm the same day.