An unidentified flying object sparked fear among residents as it hovered over homes in the northern Philippines.

Footage shows the translucent blimp-shaped aircraft as it was spotted from a village in Pangasinan province on December 18 afternoon.

It appeared to have four tail fins on the rear end of a teardrop-shaped airship with a metallic-like exterior that made it look almost transparent.

The bizarre UFO quickly baffled onlookers across towns who reported it to police. However, authorities are yet to confirm what it was.

Onlooker Mark Collado said he pulled over on his motorcycle and used his phone to zoom in on the image upon first noticing it.

He said: ‘It was the first time we have seen such a thing in our remote area. We were scared. We didn't know what it was. Some of my neighbours saw it too.

‘I took my phone out and zoomed it in to look better. I have never seen anything like it.'

The public safety NGO in the province Pangasinan Youth for Disaster Risk Reduction and Management reported that the same aerial vehicle was seen flying above several towns.

It reportedly reached a nearby province Baguio's Loakan Airport, only a few hours after its first sighting.

However, some concerned citizens have noted its similarity with China's 250ft-airship, ' Yuanmeng', which was designed to surveillance or gather intelligence.

The solar-powered Yuanmeng from China was first flown in 2015 for a test flight in Mongolia, but there were no details available about its recent activities.