Police have reclaimed control of Bali's infamous Kerobokan prison, which last night erupted in rioting as prisoners set fire to parts of the desperately overcrowded facility and hurled stones at staff.

Hundreds of riot police, some from the elite paramilitary wing, gathered shortly before dawn around the perimeter of the grounds and moved in as the sun rose, apparently first firing warning shots in the air.

At least three injured people were removed by ambulances, with rumours suggesting police used rubber bullets to subdue the rioters.

This website understands all 12 Australian prisoners in Kerobokan, including Schapelle Corby and the Bali Nine, were unhurt during the riot and subsequent police action. The Department of Foreign Affairs and Trade has confirmed that all are safe.