One person has been injured after reports of an explosion being felt in the Waikato town of Cambridge.

Fire and Emergency New Zealand says a 44-gallon drum exploded at 8.07am.

An RNZ reporter at the scene says a worker was cutting the top from a large oil drum when it ignited, blowing the lid off.

A colleague of the worker told RNZ he "was very lucky".

An ambulance is at the scene and the worker is being treated.

The lid of the drum appears to have been blown metres away in the blast.

One eyewitness says it may have been blown a block away.

The explosion caused a loud bang which could be heard around the centre of the town.

More to come...

-RNZ.