Fire engulfs historic Victoria Hotel building in Geraldton

The Victoria Hotel, better known as the Blue Heelers Tavern, was a popular place for tourists to pose for photos.(ABC News)

Fire has caused extensive damage to the landmark Victoria Hotel building on Geraldton's main street in WA's mid-west.

The Department of Fire and Emergency Services (DFES) said crews were first called to the historic building on Marine Terrace just after midnight.

The hotel was constructed in 1872 and was more recently known as the Blue Heelers Tavern but has been empty for some time.

Firefighters were called to the historic Victoria Hotel in Geraldton just after midnight.(Facebook: Geraldton Neighbourhood Watch)

The arson squad attended and Marine Terrace was closed between Cathedral Ave and Fitzgerald Street.

DFES also issued an alert to local residents, warning them of smoke in the area.

An historical image of the Victoria Hotel on Marine Terrace circa 1924.(Supplied: Geraldton Historical Society)

"As a precautionary measure, people in the area should remain inside, out of the smoke or fumes, with doors and windows closed," the warning read.

Marine Terrace between Cathedral Avenue and Fitzgerald Street is expected to remain closed for the remainder of today.

Onlookers photographed smoke billowing from the roof of the hotel.(Facebook: Geraldton Neighbourhood Watch)

Lester Avenue between Cathedral Avenue and Fitzgerald Street was also closed.

It is not yet known what sparked the blaze.

The building is well known for a butterfly mural, which has become a popular backdrop for tourists wanting to take photos in the historic town centre.