Rebels agree to MH17 site 'security zone'

Pro-Russian rebels have agreed to set up a security zone around the crash site of Malaysia Airlines flight MH17.

Pro-Russian rebels have agreed to a security zone at the Malaysia Airlines crash site. (AAP)

Pro-Russian rebels have agreed to set up a security zone around the crash site of Malaysia Airlines flight MH17, Ukraine's security service chief says.

Internationally mediated talks "concluded with an agreement to set up a 20-kilometre security zone so that Ukraine could fulfil the most important thing - identify the bodies (and) hand them over to relatives," Ukrainian Security Service head Valentyn Nalyvaychenko said in remarks televised on Saturday.