The mystery of a Nazi gold train said to be buried in Poland has taken another strange turn, after the location where the armoured train is believed to be hidden was engulfed in flames - after the Polish government cast doubt over its existence.

The train has caught the imagination of locals in the town of Walbrzych and the international media alike, after two men told the authorities they had pinpointed the location of the train.

The vehicle is thought to be packed with armaments and valuables, that reportedly went missing in the spring of 1945 in the final days of WWII.

But despite the efforts of the authorities and treasure hunters, only rusty pieces of metal have so far been retrieved.

In the latest twist in the tale, the embankment by the of Wroclaw-Walbrzych train line in the southern- Polish town, which is thought to be the secret location of the train, went up in flames along with 216 square yards of forest and bush, The Telegraph reported.

The city of Walbrzych, Poland, near which a Nazi gold train is believed to be hidden. (Image: AP) (AP Photo/Str)

A team of firefighters have brought the blaze under control with five fire trucks, after they were alerted to a fire at around 8pm on Sunday night.

Fire officers have said that the blaze was not an arson attack.

The fire comes as Polish authorities have said evidence that the train exists is “no stronger than similar claims made in past decades,” according to Bloomberg.

The tentative statement comes days after Poland’s culture minister, Piotr Zuchowski, claimed that he was “more than 99 per cent certain the train exists” after seeing its outline on an image from a ground-penetrating device.

Responding to the feverish civilian search operations sparked by the recent reports, the Polish authorities have blocked off and launched patrols in a wooded area near a railroad track, to stop treasure hunters and prevent any accidents.

“A few hectares (acres) of land are now being secured. People have been barred from the woods” surrounding the site, said provincial governor Tomasz Smolarz.

“Half of Walbrzych's residents and other people are going treasure hunting or just for walks to see the site. We are worried for their security,” police spokeswoman Magdalena Koroscik told The Associated Press. People walking down the tracks can't escape “a train that emerges from behind the rocks at 70 kph (43 mph).”

A man taking a selfie on the tracks reportedly narrowly missed being hit, she said.