At least 180 people have been killed and 200 others injured in a fire that swept through a nightclub in southern Brazil.

Police said the fire began when a band on stage started a fireworks display at the Kiss nightclub in the city of Santa Maria, in Rio Grande do Sul state.

Officials said thick smoke engulfed the venue after acoustic insulation caught fire. Reports say there was only one exit and panic spread as people tried to get out.

Many victims reportedly died from inhaling toxic fumes. Police believe there are about 20 bodies still inside the club and the death toll could rise. The fire is now out and bodies are being removed from the scene.