AN explosion in Abu Dhabi turned out to be caused by a gas cylinder while police rushed to the scene fearing a possible terror attack.

       Residents were seen fleeing the city centre as the blast sparked a fire in a building with eyewitnesses claiming it was a missile.

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       Emergency services rushed to the scene Credit: Twitter 4

       The explosion caused a blaze in a building 4

       Smoke was seen coming from the building

       An eyewitness said: "Urgent! Explosion in Abu Dhabi. Suspect that a missile would have hit the city."

       Other footage from the scene shows police and emergency services rushing at the scene with reports of a second explosion.

       Someone said on Twitter: "Everyone is talking about the explosions in Abu Dhabi, it was next to our hotel, it looks like fire.

       "But we definitely heard two explosions."

       The blast initially sparked concerns over the Chelsea squad, who were pictured training in Abu Dhabi just days ago ahead of their Club World Cup campaign.

       The US Embassy in Abu Dhabi warned Americans of reports of a possible missile or drone strike having occurred over Abu Dhabi, without elaborating.

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       But state-run WAM news agency later described the fire as coming from a gas cylinder explosion.

       A statement said: “Teams managed to control the situation after extinguishing the fire and safely vacating the residents. No injuries or casualties resulted from the fire.

       “Cooling procedures to minimise the damage are currently underway.”

       The incident comes after Yemen's Houthi rebels have launched several attacks targeting Abu Dhabi, including a recent attack that killed three people and wounded six.

       According to reports on social media one of the explosions happened 20km from the hotel of the Brazillian football team Palmeiras.

       The team won 2-0 earlier against Egyptian Al Ahly at the Al Nahyan Stadium.

       A Brazilian reporter covering the game, said he heard two loud bangs and can see smoke coming from the building, the Brasil Urgente reported.

       The city is set to play host to UEFA's Club World Cup Competition in the coming days.

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       A building appears to be on fire Credit: Twitter/@savsuper