This is the dramatic moment passengers use bottles of water to extinguish a fire caused by an overheating power bank at the back of a plane.

The blaze sparked panic as white fumes began to fill the cabin on Shanghai Airlines flight FM9449 from Zhoushan to Jieyang in China on June 13.

Reports indicate the smoke was caused by a power bank that began smouldering during the flight.

Passenger Mr Wang said the aircraft was preparing to land when the device, which a fellow traveller was using, suddenly malfunctioned and began to burn.

Footage shows panicked passengers and crew passing bottles of mineral water in an attempt to cool the charging device.

The fire was extinguished in under five minutes, and no injuries were reported. The flight landed safely at approximately 1:32 pm without further incident.

Regulations by the Civil Aviation Administration of China state that power banks with a rated energy of 100Wh or less are permitted in carry-on luggage. Devices between 100Wh and 160Wh require airline approval, while all power banks are strictly prohibited from being checked in or used during flights.