A huge undersea earthquake has struck off the coast of Bali, Indonesia, just days before thousands of families are expected to flock to the popular holiday destination for the school break.

The 5.7 magnitude quake was detected 125km northeast of Surabaya, Java, on Thursday, the US Geological Survey has confirmed.

With a measured at a depth of 588km, the quake immediately sparked fears of a tsunami and an eruption from Mount Agung volcano.

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An undersea earthquake with a magnitute of 5.7 struck off the coast of Bali, Indonesia, on Thursday (stock image)

It is the latest in a series of intense earthquakes that have rocked New Zealand, Vanuatu, Indonesia, Japan and Mexico - 'the Pacific ring of fire' - in the last 48-hours

Bali is a favoured destination among Australians, with numerous families expected to fly to the island when school holidays begin in New South Wales, Western Australia and Victoria on Friday.

School holidays in Queensland began on September 15.

Children in South Australia, Northern Territory and Tasmania will start their break on September 29.

The earthquake is the latest in a series of intense earthquakes that have rocked New Zealand, Vanuatu, Indonesia, Japan and Mexico - 'the Pacific Ring Of Fire' - in the last 48-hours.

The usually tranquil holiday island was rocked by the quake that also stirred up its biggest volcano

The quake was detected north-east of Kemeduran and immediately sparked fears of a tsunami (pictured)

Locals living near Mount Agung volcano were seen evacuating their homes following increased seismic activity (pictured)

Although an official tsunami warning has not been issued, locals living near Mount Agung volcano were seen evacuating their homes following increased seismic activity in Karangasem.

One woman was pictured loading numerous items from her home into a truck before covering them with a tarp.

Groups of people were also seen gathering at a lookout point to watch Mount Agung for eruption following the quake.

Officials significantly increased the size of the evacuation zone around the volcano on Monday, raising the alert level to high.

'We see that the earthquake frequency is very high, this is worrying when it comes to eruption,' Pak Kasbani, the head of the Centre for Volcanology and Geological Hazard Mitigation, told ABC.

'The areas should be closed, no hiking because the seismic activity will trigger dangerous gas.'

The 'Ring of Fire' is where tectonic plates collide and move, causing almost 90 per cent of the world's earthquakes.

Groups of people were also seen gathering at a lookout point to watch Mount Agung for eruption (pictured)

An officer monitors seismic waves at the Mount Agung monitoring station in Bali on Wednesday

A man and a boy are pictured fighting over the binoculars at the viewing point

Smoke billows from Mount Agung as locals feared an eruption triggered by the quake

No volcanic ash has been seen, but smoke is billowing from the crater (pictured

Flames can be seen coming from the volcano's crater at night

Officials significantly increased the size of the evacuation zone around the volcano on Monday, raising the alert level to high

No volcanic ash has been seen, but smoke is rising from the crater, he said.

Bali's Governor Made Mangku Pastika told locals this week measures were in place to handle an eruption and urged them to remain calm.

'This is a natural disaster, we cannot avoid it, we can't stop it exploding but we can reduce the number of victims and loses,' he said.

'If you have to evacuate, you evacuate.'

The earthquake in Indonesia came just hours after a powerful 6.4 magnitude earthquake struck near Vanuatu.

A powerful 6.4 magnitude earthquake has struck near Vanuatu, sparking concerns of a tsunami in the Pacific

Vanuatu, which has a population of 270,000, is made up of 80 nations scattered across 1,300 kilometres of ocean

The earthquake struck Erromago, an island in the Vanuatu archipelago roughly 135 kilometres south of the capital city of Port Vila, at 7.09am local time on Thursday.

Initial fears of a tsunami threat across the Pacific region were squashed after it was revealed the earthquake struck at a depth of 200 kilometres.

The Pacific Tsunami Warning Center confirmed there were no tsunami threats following the Vanuatu quake.

'Based on all available data a destructive Pacific-wide tsunami is not expected and there is no tsunami threat to Hawaii,' the centre said.

There have been no reports yet detailing the extent of damage done to Erromago, a tiny island with a population of just under 2,000 people.

Mexico was devastated by a 7.1 magnitude on Tuesday, killing more than 200 people and leaving hundreds more trapped underneath collapsed buildings (pictured)

A person is rescued from the debris in Mexico City after the devastating earthquake

New Zealand has been rocked by a 6.1 magnitude earthquake which struck southwest of Invercargill

Vanuatu, which has a population of 270,000, is made up of 80 nations scattered across 1,300 kilometres of ocean.

The island country sits directly on top of the 'Ring of Fire', a place where tectonic plates collide and move causing almost 90 per cent of the world's earthquakes.

Mexico was devastated by a 7.1 magnitude on Tuesday, killing at least 230 people and leaving hundreds more trapped underneath collapsed buildings.

Two powerful earthquakes struck New Zealand on Wednesday, while Japan had scares of a national disaster after a quake hit off the coast east of Fukushima early on Thursday morning.

Residents of Wellington (pictured, stock image) reported feeling the second of two quakes to hit New Zealand on Wednesday