Seismologists say a shallow earthquake near Lilydale in Melbourne's east this morning sounded like an explosion.

The Geoscience Australia website recorded a magnitude 2.2 earthquake in the area just before 7:00am (AEST).

Residents reportedly heard a large bang.

Dale, from Lilydale, told ABC local radio that he was woken up by the quake.

"It definitely was a bang and our house is 40 years old it moved and it woke us up," he said.

"The wife said what was that? And it wasn't like a slow rumble like an earth tremor, it was a bang."

@abcnews yes I thought it felt like a bang on my tin roof. Too late in the morning for big possums though. — George™(@PomPomPaloozahh) June 20, 2013

@abcnews felt exactly like the usual blasting down at the quarry - no bang, just like an underground blast, not like a quake — wendy phillips (@retrogrrl) June 20, 201

Geoscience Australia seismologist Steve Tatham says residents up to five kilometres away reported hearing the tremor which was about one kilometre below the surface.

"Quick shudders, a sonic boom, perhaps an explosion, terms that relate to the sudden arrival and no long term or long duration shaking," he said.

"We have 'felt' reports from Ferntree Gully, Croydon Mount Evelyn, Montrose."

Geoscience Australia's seismograph from its Toolangi station of the small earthquake. ( Geoscience Australia )

Mr Tatham is not surprised that some people described it as sounding like an explosion.

"Small shallow events are often perceived as explosions because the shaking, the duration of shaking is very short," he said.

There have been three small quakes, including this one, in the area since 1979.

"This 1.5 event is, not wanting to downgrade it in people's minds, is quite small. Had this been rural, I wouldn't be surprised to get no felt reports whatsoever," Mr Tatham said.

"This is a very populated area and most of these reports have come from people who are living very very close to where the earthquake occurred."

The tremor was originally listed as being magnitude 1.5 but was revised up to 2.2 after seismologists analysed additional data.

Small tremors further east, in the Moe and Korumburra areas, are not uncommon.