Passengers have been evacuated from Sydney Airport after a fire broke out at Terminal 1 this afternoon.

A spokesman for Air Services Australia told news.com.au that the fire broke out near the passenger screening area and has since been extinguished by aviation firefighters.

The passengers who were in the area have been evacuated.

It is believed the fire may have been caused by a large Lithium Polymer battery that started to smoke.

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People are being told to check with their airlines about possible delays.

Sydney radio producer Tara Moroney said smoke started to fill the terminal just before 2.30pm in the main shopping duty free area of the terminal.

A fire has been put out at Sydney Airport. Photo / Tara Moroney, Twitter
A fire has been put out at Sydney Airport. Photo / Tara Moroney, Twitter

"We couldn't see a fire but we could smell it," she said.

"Police and security started pushing people back about 25-30 meters towards the McDonalds in the terminal."

Ms Moroney, who is heading to London on board a Qantas flight via Singapore, says her flight has been delayed by one hour however couldn't confirm if it was because of the incident.

"A security guard I spoke to said a battery had dropped and sparked a fire," she explained.

"There is a robotics conference in town and it would've been from that.

"Fire fighters and police continued to push people back, [however] no one already inside the terminal was evacuated. Shops were closed, no one was allowed to shop for about 30 minutes."

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A spokesperson from Jetstar said none of their flights have been delayed, while Virgin Australia and Qantas said passengers will be processed as quickly as possible and shouldn't experience any major delays.

The airport has been contacted for comment.