However, it turned out to be a test for a clock to be beamed onto the sky

Dozens of pictures and videos appeared online of the 'UFO'

Citizens in a Chilean city were shocked to find a strange circle of light floating across the night sky, and took to social media to try to find the answer to the mystery 'UFO'.

The sky above the city of Iquique in Northern Chile's Tarapaca Region was suddenly adorned with a blue light circle earlier this week.

A number of videos and images appeared on Twitter and Instagram and other social media channels, with inhabitants asking for an explanation.

One Twitter user: 'What is that on the sky?,' posting an image to their social media channel.

Another posted a picture, captioned: 'Something strange is happening on our sky'

Another seemed convinced that the city had been paid a visit by extraterrestrials, tweeting: 'It appears an UFO can be seen on the sky of Iquique. I'm nervous'

Is it a bird? Citizens of Iquique, in Northern Chile's Tarapaca Region spotted a strange light above the city earlier this week

Is it a plane? A number of photos of the hovering light were posted online by puzzled inhabitants hoping for an explanation to the 'UFO'

However, fortunately for the citizens of Iquique, no aliens were about to land.

Local authorities explained the city is building a new public clock that projects the time on the sky, and the light had been part of a 'test run'.

Authorities informed national newspaper Soy Chile that they have nearly finished the new device that is currently being tested. They did not confirm when it will be put to use.