Historical Melbourne building facing demolition after devastating fire

A historically significant building in Melbourne, which was the site of three deaths seven years ago, may be torn down after it was engulfed by fire overnight.

An inferno broke out at the old abandoned Kinnears factory on Ballarat Road at Footscray about 7.45pm yesterday.

"We've had approximately 20 appliances here with about 80 crew," Fire Rescue Victoria commander Tony Milczakowsky said.

"It has compromised the roofing structure, a lot of it has come down."

There were no reports of injury and the fire was swiftly brought under control.

Rubbish was found burning inside the warehouse, with the cause of the fire now under police investigation. 

The building is more than 128 years old and was rebuilt following a fire in 1907.

It was the same location where three people who were squatting died in a deliberately lit blaze in 2017.

The most recent fire could mean the end of the building.

The road was closed for most of today as part of a wall was demolished this afternoon.

The site has been earmarked for future redevelopment but, due to safety concerns, further assessments could lead to a total demolition.

"There are safety issues, we're then unaware of who may be inside at the height of the fire," Milczakowsky said.