Streets have closed and businesses evacuated following a restaurant fire in Melbourne‘s east.

Fire crews were called to the Indian restaurant in Malvern East about 9am on Friday, as flames and smoke issued from the roof.

Neighbouring businesses have been evacuated, several streets are closed and the community is warned to keep clear of the area and stay indoors if required.

The restaurant, which has a residence in the second storey, is under control but the building is understood to contain asbestos.

The cause is unknown and there are no reported injuries.