Lancashire Police has now confirmed that Blackpool Tower is NOT on fire, but instead some orange netting was mistaken as flames.
It comes after Lancashire Fire and Rescue Service made an announcement that there was a fire at the landmark.
A spokesperson from Blackpool Police said: "We are at the scene in support of Lancashire Fire and Rescue Service, Blackpool Council and Merlin Entertainment.
"The top of the tower is currently closed for renovation and difficult to access. Our helicopter has flown over the tower and there is no fire. We can confirm what can be seen is orange netting."
Netting was mistaken as flames at the top of Blackpool Tower
Netting was mistaken as flames at the top of Blackpool Tower
A spokesperson from Lancashire Fire & Rescue Service said earlier this afternoon: "We have six fire engines, the drone team and the rope rescue team currently in attendance at a fire on Promenade, Blackpool.
"Please stay away from the area. The drone team are in operation so please do not fly drones in the area as you may obstruct emergency operations."
The incident was first reported to emergency services at around 2.15pm today. One arrest as been made in relation to a breach of peace.
Blackpool police added: "One man has been arrested on suspicion of breach of the peace and is being transported to custody."
Blackpool Tower (file pic)PASpeaking to Lancs Live, one person said: "At least three fire engines arrived in a matter of minutes, and then the street behind the tower was cordoned off, so you can’t get any closer."
"It's been absolute chaos down here - people don't expect something like this to happen to such a famous building."
In an update, Lancashire Fire and Rescue Service said: "Lancashire Fire and Rescue Service was called to the Promenade, Blackpool today by concerned members of the public, due to a combination of factors that led them to believe there was a fire.
"The area where the fire was suspected is generally inaccessible, therefore access to this area is difficult. A specialist rope rescue team gained access and confirmed that there was no fire.
"This incident was supported by the National Police Air Service, who used thermal imaging which provided further assurance (fire service drones were unable to fly due to the windy weather conditions)."
Dating back to 1894, the Tower is one of the most iconic landmarks of the North West and is a hub for entertainment and culture.
A report said the investment was needed, including replacing the lift shaft and renewing steelwork.
A Blackpool Council report said: "The works are essential in order to significantly extend the useful economic life of the asset, preserve and maintain the structural integrity of the Tower and safeguard the ability to continue to operate the Tower as a world-class family focused visitor destination and one of Blackpool’s flagship visitor attractions."