Police have found what appears to be a body at the scene of this morning's fatal house fire.

Emergency services were called to the house in Milton, South Otago, shortly before 4am.

The Otago Daily Times understands the victim was a man who lived at the property.

Police said a scene and fire examination was continuing and a cordon remained in place around the address.

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They confirmed this afternoon that police had found what appeared to be a body inside the house.

"Police will be unable to release the name of the person until a formal identification is completed and the persons family have been advised," they said in a statement.

The cause of the fire was still unknown.

The Fire Service said the house was well alight when crews arrived, but had since been put out.

Two crews from Milton were sent, along with two from Balclutha.