An Indonesian soldier has been killed in a clash with students in Papua, a military spokesman said, while media reports said three students also died in the incident that marks a new escalation in unrest in the region.

Key points: Hundreds took to the streets in the town of Wamena to protest against allegations of racism

Hundreds took to the streets in the town of Wamena to protest against allegations of racism There are unconfirmed reports that three students have died

There are unconfirmed reports that three students have died In another video purportedly from the town of Jayapura, dozens of gunshots can be heard in the space of two minutes

Fires were raging in the town of Wamena after hundreds of students took to the streets on Monday to protest allegations of racism.

It was the latest uprising since late August, when at-times violent protests convulsed the region for two weeks over racial slurs against Papuan students in Java's city of Surabaya, who were tear-gassed in a dormitory and detained over accusations of desecrating a national flag.

The military said in a statement that a soldier was stabbed to death after escorting student protesters from a demonstration at a local university in Jayapura.

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The students had been taken away in trucks by security forces after police and the university prevented them from holding a protest at the campus, the statement added.

Kompas TV reported three students were also killed in the clash, citing the head of Papua province health department.

A police spokesman did not immediately respond to a request for comment on the report.

Amateur video posted on social media shows numerous buildings ablaze, including the local government offices and several structures at the Wamena airport.

Video taken from above showed columns of black smoke rising into the air.

There were also photos shared on social media showing Papuans covered in blood, apparently suffering gunshot wounds, but the photos could not be verified.

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Indonesian police have warned a social media post claiming the military and police have been shooting people in Wamena is a hoax.

There are also reports of violence in the capital, Jayapura.

In one amateur video, purportedly from Jayapura on Monday, dozens of gunshots can be heard in the space of two minutes.

The ABC understands the protest in Wamena started over disputed claims an Indonesian teacher called a student a "monkey".

Police insist the story about the teacher is a hoax.

National Police spokesman Brigadier General Dedi Prasetyo insists the situation is "still under control by our [security] apparatus".

He said the unrest is being handled by the police and military to ensure the "anarchy doesn't spread".

Resource-rich Papua — which is home to Grasberg, the world's biggest gold mine and second-biggest copper mine — was a Dutch colony that was incorporated into Indonesia after a controversial UN-backed referendum in 1969.

Since then, the region has endured decades of mostly low-level separatist conflict.

Violent protests rocked the region for two weeks in late August over racial slurs against Papuan students in Java's city of Surabaya.

The students were teargassed in a dormitory and detained over accusations of desecrating a national flag.

Indonesia has sent almost 6,000 additional military and police personnel to the region.

Police have rounded up dozens of people for damaging public property in the protests, with several named as treason suspects over a demand for an independence referendum that authorities have ruled out.

ABC/Reuters