A man has been arrested after a fire at a strip club in Sydney's Kings Cross overnight.

Emergency services were called to the business on Darlinghurst Road about 3:30am to find the second storey well alight.

Fire and Rescue NSW said around 200 people from the club and a nearby residential unit were evacuated as a precaution.

Police say there was fight between a man and a worker the club before the fire started.

A 25-year-old man has been arrested and is being questioned by police.

The fire is believed to have been at the Love Machine strip club.

A crime scene has been established at the club and will be examined by forensic officers and local detectives later today.

No-one was injured in the fire.

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