A fire broke at a popular Sydney Chinese restaurant on Saturday night, causing traffic chaos on one of the city's busiest streets.

King Street in Newtown was closed down following a fire at Happy Chef that started just before 10pm.

In place of the typical bumper-to-bumper traffic on a busy weekend night is an eerily deserted road.

The entire three-storey building was engulfed in flames with firefighters assessing the structure for stability.

Adult entertainment store Max Black occupied the second floor.

Police were called to the scene to divert traffic.

Newtown's busy King Street was shut down following a fire at the Happy Chef restaurant

The blaze broke just before 10pm on Saturday, causing traffic chaos

Police were called to the scene to diverting traffic away from the burning building

Patrons of the popular Chinese restaurant have taken to social media to share their shock at news of the blaze

Another tweeted: 'People are saying Happy Chef is on fire. Best Chinese food ever. I was only there today!!!'

Patrons of the popular Chinese restaurant took to social media to share their shock at news of the blaze.

'People are saying Happy Chef is on fire. Best Chinese food ever. I was only there today!!!,' one tweeted.

Gelato bars, pubs and other eateries surround the restaurant.

No injuries have been reported with everyone in the surrounding area evacuated safely.