This beautiful fire rainbow looked like a unicorn when it was spotted in the sky.

Onlookers recorded the incredible shimmering clouds - known as a circumhorizontal arc - in the sky in Pagadian City in the Philippines.

The unique formation resembles the multicoloured flowing mane of the mythological horned creature.

Anne, a nurse, said she recorded the ‘’unicorn rainbow’’ at around 3pm but it disappeared quickly after.

She said: ‘’When I saw it I just thought that it looked like a unicorn, so I called it a unicorn cloud. It looks like a unicorn is coming.

‘’It was amazing. It looked like a magical kind of phenomenon. I’ve never seen anything like it before.

‘’It wasn’t in the sky for long. So I was lucky to be able to record it. Certainly, it has made a lot of people happy to look at it.’'

The never-before-seen rainbow is believed to have formed from a combination of the humidity, heat, and tiny droplets of water suspended around the cloud.