Two people are lucky to have escaped unharmed after after a waterfront restaurant collapsed into a lake.

One half of upmarket seafood restaurant Milano's on the Lake, in Pelican, south of Newcastle, gave way and fell into Lake Macquarie on Monday morning.

Fire and Rescue NSW said poles and piers underneath the building had collapsed under weight, which forced the front of the building to sink into the lake.

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Sinking: Two people were lucky to escape a sinking seaside restaurant, south of Newcastle, before it collapsed into the Lake Macquarie marina

A view from the inside of the venue shows tables ready for service disrupted by the sinking of the restaurant 

Some of the restaurant appears untouched by the dramatic building collapse 

Fire and Rescue NSW said poles and piers underneath the building had collapsed under weight

Crews are currently setting up booms to prevent contamination.

The two customers inside the restaurant called emergency services just before 10am Monday morning.   

'We had some calls from people inside the building who said they could feel a movement in the building,' Superintendent Ian Krimmer from Fire and Rescue NSW told ABC News.

Disaster: The two customers inside the restaurant called emergency services just before 10am Monday morning

Marina: Superintendent Krimmer said it was expected divers would be brought in to assess the situation.

'Fortunately there were only two people. They have escaped safely and that's the good news.' 

Superintendent Krimmer said it was expected divers would be brought in to assess the situation. 

'We're just placing what they call booms or floating devices around the front of this collapsed structure and they'll simply contain any spillage of flammable liquids. 

Fire services attended the building: 'Fortunately there were only two people. They have escaped safely and that's the good news'