The sightseeing helicopter plunged into the Fox Glacier, a popular tourist site on the west coast of the South Island, with weather conditions reported to be heavily overcast and raining at the time.
A paramedic and alpine rescue team who looked over the crash site confirmed there were no survivors.
"A helicopter carrying seven people including the pilot has crashed at the top of the Fox Glacier," inspector John Canning said.
"We have been to the site and there is no sign of life and tomorrow we hope to recover the bodies of those involved."
"I'm not going to risk any more lives, we've lost seven," he said.
"The terrain at the top of the glacier is very rough, as you can imagine it's icy and there are crevasses -- it's quite dangerous."
Grey District Mayor Tony Kokshoorn described weather conditions around the glacier at the time of the accident as "terrible" with heavy rain and poor visibility.
"It wouldn't be a good day to be flying helicopters," he said.
The names and nationalities of the pilot and six passengers would not be released until their families were informed of the tragedy, however Canning confirmed the pilot was a local man.
The alarm was raised late Saturday morning when an emergency locator beacon was activated.
The New Zealand Rescue Co-Ordination Centre sent four helicopters to the glacier where they found a deep scorch mark leading to the helicopter about 2,500 feet (762-metres) up the glacier.
A spokesman for Alpine Adventures, which operated the single-engine Squirrel helicopter, confirmed it was on a scenic flight with six passengers.
New Zealand's Transport Accident Investigation Commission said it would investigate the cause of the crash and had sent four investigators to Fox Glacier.
Five years ago, nine people including four tourists were killed when a plane carrying a party of skydivers crashed on take off at Fox Glacier airport.
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