SYDNEY - A major fire has broken out at a building in the suburb of Surry Hill in central Sydney on Thursday afternoon.

Local media said it is believed that at least 50 people have been evacuated from the seven-storey building as the fire burns through the multiple levels on Randle Street near Central Station.

Fire and Rescue New South Wales said emergency calls were received when flames started engulfing the building just after 4:00 p.m. local time. More than 100 firefighters and 20 fire trucks from multiple stations are now working to contain and extinguish the blaze.

The building is starting to collapse, while the inferno is beginning to spread to several neighboring buildings, including residential apartments.

At least one vehicle in the vicinity has also been destroyed by fire.

The fire and rescue service also urged the public to avoid the area as firefighting operations continue.

Fire and Rescue NSW Superintendent Adam Dewberry said the fire began on level three of the building, according to a report by national broadcaster ABC News.

"We got the fire on the third level of what we believe is a seven-level block. We have people evacuating and firefighters entering this building to fight this fire," he said.

The fire also caused peak hour gridlock as major roads around Randle Street have been closed, and buses are being diverted. The light rail was halted and some entrances to Central Station are only for entrance and not exiting.