It is also being reported that loud bangs were heard in the area.
Firefighters are tackling a major blaze at the Envy Nightclub in Derry.
Belfast Live has said that at least six fire engines are on the scene tackling the blaze.
An aerial appliance has also been deployed.
Footage from the scene is being shared widely on social media, and a number of videos show the roof of the building alight.
The PSNI has released a statement urging people to stay away from Lawrence Hill and Asylum Road.
Both motorists and pedestrians are being asked to avoid the area, and those living or working in the area are being asked to keep their windows closed.
Please avoid Strand Road, Derry/Londonderry due to fire. pic.twitter.com/falh76uD9m
— Police Derry City and Strabane (@PSNIDCSDistrict) January 9, 2020
LISTEN: You Must Be Jokin’ with Aideen McQueen – Faith healers, Coolock craic and Gigging as Gaeilge
