An earthquake has struck off the coast of Mindanao in the Philippines with a magnitude measuring 6.9, causing 'hazardous' waves within 300km of the area.

The disaster initially sparked tsunami warnings however the threat was downgraded several hours after the quake, which occurred at 4.30am local time on Saturday morning.

Philippines' Warning Centre initially reported the earthquake had a magnitude of 7.2, but it was then reduced to 6.9.

The earthquake struck off the coast of Mindanao (pictured) at 4.30am local time

Locals noticed explosions and fire (pictured) around the areas following the earthquake

Hazardous waves are warned to potentially spread 300km away from the epicentre, located south of the Philippines city of General Santos.

There has been no tsunami threat issued to Australia but major sea level disturbances will occur around the area.

Residents across the southern Philippines have also been alerted of possible aftershocks and have been told to stay away from the beach and to not go near the coastline.

Locals have also reported hearing explosions and spotted fires around the time of the earthquake.

Waves reaching 3ft are expected to continue thrashing the coast for some hours, The Philippines Institute of Volcanology and Seismicology warns.

'I heard the siren with explosions': Locals report hearing outbursts during the earthquake