Old wool store fire in Newcastle suburb of Wickham sends smoke across suburbs

Around 100 firefighters were called to the scene. (Supplied: Paul Baxter/Fire & Rescue NSW)

An extraordinary scene has unfolded in the harbourside Newcastle suburb of Wickham where a fire engulfed an old wool store building. 

Around 100 firefighters worked to contain the large blaze after being called to Annie Street just before 3pm.

Flames and thick smoke could be seen from neighbouring suburbs.

30 fire trucks attend a blaze at a Wickham storage facility (ABC Newcastle: Giselle Wakatama)

The building's lanolin-soaked timbers were believed to be more than 100 years old, and nearby residents watched in shock as the structure cracked and the tin roof buckled and exploded. 

Thick, acrid smoke billowed into the air amid fears for the state of the warehouse's asbestos roof. 

Residents were urged to stay inside with their doors and windows closed.

Flames from storage facility blaze visible above Newcastle streets (Supplied: Isabella Grati)

An exclusion zone was set up in several nearby streets as a water cannon were brought in to douse the flames. 

The fire could be seen from across the harbour; the heat could be felt hundreds of metres away. 

It is believed the old wool stores were being used as office space.

Residents told the ABC that plans had been mooted for Manhattan-style loft apartments. 

Smoke from the fire can be seen across the city. (Supplied)

NSW Fire and Rescue superintendent Adam Dewbury said two buildings were engulfed in fire and crews worked to stop it spreading to a third.

Superintendent Dewbury said concerns about a neighbouring fuel storage facility had eased.

"So that's been assessed and reviewed and so far we've been able to stop that fire from going anywhere near there."

Smoke from wool store fire visible across Newcastle harbour (Supplied)

Residents evacuated

Residents in Annie Street, Milford Street, The Ave and part of Robert Street were evacuated as a precaution.

Police said it was unlikely they would be able to return Tuesday night. An evacuation centre had been set up at the Goodlife Church in Albert Street.

A team from the Environment Protection Authority's hazardous response unit was on site providing technical and scientific advice and assistance regarding the health impacts from the smoke.

Carly Galvin, who lives in a wool store building across the road that has been converted into loft apartments, said she was anxious.

"I am just obviously worried about our apartment, but also just to see across the road go up in flames is concerning," she said.

"The smoke, like how is it going to affect us all in the building across the road with everyone's windows open?"

Ty Lovatt-Smart also lives across the road and said it was emotional to see the wool store burn.