Squatters feared to have caused inferno near Nylex building

It's feared squatters may have caused a huge inferno that destroyed a disused warehouse next to the Nylex clock.

Fire crews were called to the scene just after midnight, with around 60 firefighters forced to wear breathing apparatus as dangerous asbestos fumes caused difficult conditions.

The blaze was brought under control, but engineers will remain at the scene to assess the damage.

"There is a brick wall that has a chance of collapsing," Commander Greg Badrock from the Metropolitan Fire Brigade said.

"Engineers will decide whether the wall needs to be demolished…this will cause disruption to the freeway in the morning," Cmdr. Badrock said.

The City Link on-ramp at Punt Road will remain closed until at least Monday morning. Authorities fear parts of the damaged wall could collapse onto the road.

Meanwhile, residents in nearby apartments watch the blaze unfold from their balconies.

Neighbours say it's the fourth fire at the vacant site in weeks.