Fire in inner Melbourne deemed suspicious

A 18-year-old woman has been arrested over a suspicious fire that gutted a government-owned building in inner Melbourne.

Fire crews were called to the Travancore address, leased to the Royal Children's Hospital, about 2am to find a brick house fully on fire, parts of the structure collapsing and flames threatening a nearby children's centre.

Police arrested a Brunswick woman at a nearby tram stop a short time later.

She remains in custody and is assisting police.

A Royal Children's Hospital spokeswoman said there was no impact on clinical services.

Crews took 35 minutes to control the blaze, which sparked a community advisory message for smoke in the area.

No injuries were reported.