The Kilkenny Inn, long-time home of one of the city’s most infamous strip clubs, Goldfingers, last night went up in flames.

Fire Rescue Victoria (FRV) says crews were called to the building at the corner of Lonsdale and King Street, once lablled "the intersection of sleaze", just after midnight.

FRV reports it was on the scene within four minutes but found the building well ablaze. Victoria Police and Ambulance Victoria also attended from the early hours, amid reports that squatters may have been trapped inside.

More than 50 firefighters battled the blaze. It was contained within 90 minutes, but crews have continued to work well into the morning to manage the devastation.

Victoria Police reports that a crime scene has been set up and fire investigators are attending the site this morning.

Traffic is expected to be disrupted in the area for most of the day. Detours are in place and VicRoads is advising that "city loop trains are your best option around the city at the moment."