One witness, who asked to remain anonymous, told news.com.au that workers on the roof of nearby ANZ Stadium rushed to the skate park to "get some young people out".
"It was all very dramatic and there were fire engines everywhere," the source said.
"We don't know if anyone has been hurt."
Nearby sports halls were also evacuated.
One man in his 30s was treated for mild smoke inhalation on the scene before he was taken to Concord Hospital as a precaution. News.com.au understands no one else was injured.
Another witness told news.com.au the fire looked like it was "definitely high in the roof" of the Monster Skate Park complex, which was used as an official sporting venue during the Sydney Olympic Games.
A NSW Fire Service spokeswoman told news.com.au the blaze has been categorised as a "sixth alarm, which is rather large".
"We have 12 fire crews on the scene with more on the way," she said earlier today.