"Emergency services are currently responding to reports of an explosion at Manchester Arena last night. There are a number of confirmed fatalities and others injured," the Greater Manchester Police said in a statement.
"Please avoid the area as first responders work tirelessly at the scene," it said.
Further details of the incident are unclear but eyewitness reported hearing a loud "bang" from inside the venue, which was playing host to a concert by American pop star Ariana Grande. Video footage from the scene showed bloodied victims being helped by emergency services.
"Some people were screaming they'd seen blood but other people were saying it was balloons busting or a speaker had been popped," said another eyewitness.
The UK's Network Rail said train lines out of Manchester Victoria station, which is close to the concert venue, were blocked.
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