CCTV captures moment e-bike explodes into flames at Sydney hostel

A lithium-ion battery has been determined as the cause of a blaze in a backpackers hostel in inner Sydney.

CCTV footage captured the moment the battery exploded inside the Mad Monkey hostel, as two backpackers fled from the flames.

The fire erupted at 9am on Wednesday, forcing 70 people to evacuate the Potts Point accommodation.

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One man, aged in his 20s, suffered minor leg injuries from the explosion, while a second made it out unscathed.

"(I'm feeling), a little shocked, but I'm okay - I'm lucky to be here and intact," French Backpacker Phillip told 9News.

Philip was standing in the doorway of the room where the battery exploded, talking to his friend who was inside before the flames sprung from the battery.

Fire and Rescue have confirmed the cause of the blaze was a faulty e-bike battery left on charge.

Fire crews contained the fire to just the one unit, and managed to extinguish it a short time later.

Witnesses reported seeing flames shooting out the side of the building.