The quake shook the area at 7:45 a.M. (local time) at the junction of the Minxian County and Zhangxian County, the Gansu Provincial Seismological Bureau said.
The epicentre was at 151 kilometres west of Beidao in Gansu province at a depth of just 9.8 kilometres.
At least 11 people were killed and 81 others injured, state-run Xinhua news agency reported.
Initial reports indicated damage to the buildings.
The government has initiated emergency relief measures by mobilising relief teams and supplies.
The locals in Minxian County said strong tremor was felt in the area and they saw trees and homes were shaking. They also said that the quake lasted for about one minute.
Meanwhile, the earthquake was also felt in neighboring cities of Dingxi, Longnan, Tianshui, as well as the provincial capital city of Lanzhou.
The cities of Xi'an, Baoji and Xianyang in neighboring Shaanxi Province were also reported to have felt the quake.
A man surnamed Li from the Xi'an City said he felt a strong shake when he was sleeping as he was living on the 31st floor of a high residential building.
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