People in the path of an out-of-control bushfire burning in the southern Western Australian city of Albany have been told to evacuate or fight the blaze.

The fire is burning less than a kilometre from the central business district on the west side of Mount Clarence, firefighters said on Thursday.

“Three water bomber airplanes are circling the fire at the intersection of Watkins Road and Serpentine East Road,” local journalist Elyce Holden tweeted about 10am local time.

Residents near the famous Dog Rock tourist attraction and the Albany Senior High School have been warned “there is a possible threat to lives and homes”.

“If you are not prepared or you plan to leave, leave now if the way is clear,” an emergency services WATCH AND ACT warning said.

“If you are well prepared and plan to actively defend your home, make final preparations now.”

The port city of Albany is 417km southeast of Perth and has a population of about 39,000 people.

The city centre is at the northern edge of Princess Royal Harbour, which is a part of King George Sound.

– AAP