A funicular has derailed in central Lisbon, smashing into a building and killing at least three people.

Authorities said about 20 people were injured and several people were trapped inside the Elevador da Gloria in the Portuguese capital.

Police told CNN Portugal three people had died and paramedics said three seriously injured people were taken to hospital.

Live footage on local TV showed the emblematic bright yellow carriage completely destroyed, surrounded by firefighters.

Videos shot by bystanders showed a huge cloud of dust and people running towards the accident.

Several individuals who sustained injuries were removed from the scene of the crash, which occurred on Wednesday afternoon (early Thursday AEST) in a notably tourist-friendly area of the town.

The President of Portugal, Marcelo Rebelo de Sousa, expressed profound regret over the incident, extending his condolences and support to those impacted by this “tragedy”.

Lisbon Mayor Carlos Moedas was at the site of the crash. 

This funicular service connects Restauradores, an area bustling with hotels, a major railway station, numerous shops, and dining venues, to Bairro Alto, the liveliest district for nightlife in the city.

Lisbon, known for its hilly landscape, hosts several funiculars and famous trams that are similarly designed. These means of transport are popular not just with tourists but also among locals navigating the city.

Carris, a major operator of the city’s public transport, informed CNN Portugal that every resource was mobilized to address the situation, emphasizing that the “priority is to monitor the situation”.

A spokesperson didn’t offer any details of a possible cause for the crash.