At least 245 people have died in a fire that swept through a nightclub in a university city in southern Brazil.

Hundreds of people have been taken to hospital and the death toll could rise.

Local media said the fire began when a band let off fireworks at the Kiss club in Santa Maria, Rio Grande do Sul States.

It said some 15 bodies were found in the club's toilets where people had apparently sought refuge.

The fire broke out after 02:00 local time when between 300 and 500 people are believed to have been in the club, where a band was playing.

According to officials, thick smoke engulfed the venue after acoustic insulation caught fire.

Reports said panic spread as people tried to get out and victims died from inhaling toxic fumes or from being crushed.

The fire is now out and bodies are being removed from the scene. President Dilma Rousseff cut short a visit to Chile and was returning to Brazil following the blaze.