The blaze started in Clifton Street, close to Talbot Square, in the early hours.

The newly refurbished Yates Wine Bar has been destroyed and several other neighbouring buildings gutted.

At its height 90 firefighters from across Lancashire were drafted in to tackle the blaze.

Seven people - including a baby - were evacuated and are being looked after by Blackpool Council staff.

Police are now questioning the man.

The fire is believed to have started in the ground-floor of a pet shop shop and spread through the roof of the neighbouring three-storey Yates' building.

The Wildcats lap dancing bar has also been severely damaged, and the Subway sandwich shop is also affected.

>> Watch exclusive video of fire damage
>> View our photo gallery of the fire
>> Watch dramatic footage sent in by a Gazette reader

Three aerial ladders were used and, at 10.30am, fire chiefs said the blaze was under control.

However, a wall of the Wildcats appears as if it may collapse.

The area around the scene has been sealed off by police.

Peter O'Brien, assistant chief fire officer for Lancashire, said: "When crews arrived, just after 3am, they found a significant developing fire
in the middle section of the Yates Wine Lodge building.

"There was a real problem with the wind pushing the fire away from the Promenade towards the rest of the terrace so we realised we would need
signifacnt resources.

"Up to 100 firefighters were here at the scene of the fire and it is abolutely tragic.

"We have a real heritage building of Blackpool which to all intents and purposes has been destroyed by the fire."

Eyewitness Cannon Bob Dewhurst, of Sacred Heart Church, said: "At around 5am I woke up to a door across the road being beaten down by firemen.

"There were around 20 people on the pavement that had been evacuated, and by this time huge flames were licking up the side of Yates, opposite.

"The firemen were surrounding Yates but couldn't get in.

"Then the dome at the top suddenly collapsed."

Lancashire Police said there were no reported injuries.

Blackpool Council leader Peter Callow said the resort had lost one of its most famous buildings.

He said: "This fire has destroyed one of Blackpool's iconic buildings and it is particulary upsetting as Yates' had recently spent half a million pounds restoring the building to its former glory.

"I officially opened Yates' last year after the painstaking work had been done and I know how proud people were.

"This fire is tragic because the opening of the nearby Travel Lodge and the completion of the revamp of Rumours had seen Talbot Swuare looking very fine again.

"We will now be talking to everyone concerned to see what is the best way forward."

* Were you at the scene? Do you have pictures? Please email jon.rhodes@blackpoolgazette.co.uk or alison.bott@blackpoolgazette.co.uk