A "serious issue" with the latest Xbox One update for Terraria has caused the game's online multiplayer to stop working, 505 Games has confirmed.

The new update rolled out yesterday, prompting the game's publisher to issue a warning asking players to "avoid trying to use" the Xbox One version's online multiplayer "for now".

"We are sorry to confirm that a serious issue exists in the Xbox One Terraria update that was published 6th July 2016, version KTCP-20160531," 505 said in a tweet posted this morning. "Online multiplayer is broken, and players should avoid trying to use that game mode for now."

"Single player and local multiplayer are not affected, and can be safely used.

"Be assured that we are working on fixing this currently, and we will get a fix out as soon as practical. We'll continue to keep you informed via these channels."

An ETA on the fix has yet to be provided.

Source: @505_Games