Calls were made to the police at 1.49am local time (12.49 GMT) regarding an explosion.
Matters Sköld, an officer at Sweden’s Emergency Service Division South, said: “There have been many people who have phoned in regarding an explosion in the proximity of Lilla Torg.”
It was later confirmed the blast happened at a restaurant.
Windows were smashed in the explosion, but a full damage report has not been released.
A police cordon is now in place and emergency services are waiting to be released into the area.
Mr Sköld added: “We are cooperating with the police. We are not currently at Lilla Torg, but we are investigating a fire alarm nearby.”
There have been no reports of injuries at this time.
Residents took to Twitter where they claimed to have heard a huge blast.
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