A spokesman for Air Services Australia told news.com.au that the fire broke out near the passenger screening area sparking an evacuation of nearby passengers.

The fire broke out at around 2.15pm and was quickly extinguished by aviation firefighters.

It is believed the fire may have been caused by a large Lithium Polymer battery that had come from a robotics conference taking place in Sydney.

A passenger was passing through security with a “robot” that he had taken to the conference, according to The Australian.

He was asked by staff to remove the battery and had to cut a wire to do so, but he reportedly cut the wrong one which caused a small explosion fire.

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.

“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 a spokesperson for the airline has confirmed the delay is unrelated to 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.”

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.

News.com.au has contacted Sydney Airport for comment.

Processing at the terminal has now recommenced.

More to come.