A central Dunedin hotel has been evacuated after “toxic” gas was detected in the basement of the building.

Emergency services were called to the Scenic Circle Hotel in Princes St just before 3pm on Monday.

Part of Princes St and Dowling St have been closed off.

Fire and Emergency NZ Senior Station Officer Mark Leonard said a potential fault with a transformer created a “toxic” gas and the building was evacuated as a precaution.

Fire crews in gas suits and splash suits were investigating.

Mr Leonard could not say what the gas was, but it was “potentially hazardous”, and a poisons centre in Australia had been contacted.

Police said motorists were advised to take alternative routes and the public should avoid the area.

- Allied Media