A fire is burning at the No.4 nuclear reactor at Japan's stricken Fukushima No. 1 power plant, Prime Minister Naoto Kan confirmed today, warning that dangerously high levels of radiation are leaking from the area.

Delivering a message to the nation, Kan said people within a 20km radius of the plant should evacuate, while those a further 10km away should keep indoors and shut windows.

Authorities said they were doing everything possible to extinguish the fire at the No.4 reactor as the crisis engulfing the nation's nuclear industry following Friday's 9.0-magnitude earthquake and subsequent tsunami worsens.

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