Australians tell of chaos as five people killed in ‘terrifying’ Mexican nightclub shooting

A group of Australians have narrowly avoiding serious injury in a shooting which left at least five people dead at a nightclub popular with tourists in Mexico.

Shots were fired at the popular Blue Parrot club in Playa Del Carmen just after 3am local time (7pm AEDT) on the final night of the 10-day BPM musical festival, sparking a stampede.

In addition to the five people killed, at least 15 people were injured in the gunfire and stampede.

Perth man Tim Mullen, who was with a group of friends at the festival, told 9NEWS he could hear the “pops” ring out, thinking it may have been fireworks.

"As we sat down there was more and more screams running through the club," Mr Mullen said.

“You could hear the gun shots getting close and then they were, like, directly behind us maybe within five metres.

"I know that I ran past four victims and there was at least two others behind me that I didn’t see, where or not they are all dead or not, I'm not sure.

“We thought the worst. Things escalated quickly around us. We heard the pandemonium move progressively closer,” he said.

Fellow Australian Ben Forbes said he and his friend Tyler, from New Zealand,  were “traumatised” by what they saw.

“Everyone was terrified, looking for their friends,” Tyler said.

“Someone got shot like 20 metres away from me.”

Mr Forbes said the attack happened “so quickly.”

Videos purportedly shot at the scene shown on television and social media appear to show dancers ducking for cover and running out on the streets to safety

Quintana Roo State Attorney General Miguel Angel Pech told a press conference that two Canadians, an Italian and a Colombian were killed.

A woman is also believed to have died in the stampede to exit the club.

The Department of Foreign Affairs and Trade said it is aware of reports of Australians in the area, but confirmed none were harmed.

A spokesperson said the Australian embassy was in close contact with security agencies.

"If you have any concerns for the welfare of family and friends in the region, you should attempt to contact them directly,” the spokesperson said.

Mr Pech said festival security guards tried to stop the gunman and subsequently came under fire.

The state government added in a statement that one person was in a critical condition, while four people were arrested on suspicion of being involved.

The motive for the attack remains unknown, however there are unconfirmed reports the incident may have started as a result of a dispute on the dancefloor, with innocent victims caught up in the crossfire.

Playa del Carmen is 68 kilometres south of the tourist hub of Cancun. 

It is the site for the BPM festival, one of the biggest electronic music events in the world, with top DJs flying in every January to play in the city’s clubs.

The region, popular among American and European tourists, has been largely spared from the drug violence plaguing other parts of Mexico.