Two people have been confirmed dead and one in a serious condition after an explosion rocked central Madrid on January 20.

The cause has not yet been determined although initial reports suggested it could be a gas explosion.

Footage shows a building's interior blown out with debris and rubble scattered across the street in Calle de Toledo.

Footage shows the aftermath of a large explosion that hit Madrid, Spain, on Wednesday afternoon (Jan 20).

Large amounts of debris and rubble were scattered across the street in the downtown area of the city.

The number of casualties or the cause of the explosion was not immediately known. There were reports that one person was missing and several people were injured after the building collapsed.

Locals said the blast happened shortly after 3 pm local time at a religious building that provided residential training for priests.