Motorists were told to avoid King Street in Newtown on Christmas morning after a fiery crash early on Christmas morning.

A NSW Police spokesman said a van crashed into two power poles before hitting two shops about 100 metres south of King Street's intersection with Enmore Road just before 5am.

A witness said a fire also broke out beneath the vehicle, however the flames were quickly extinguished.

Paramedics treated the driver for chest pains, before taking him to hospital.