A volcano erupted on Sunday in south-west Iceland near the fishing town of Grindavik, which has been evacuated, the media reported.

It began erupting about 03.00 GMT, but it is not clear which direction the lava is flowing, BBC reported quoting Iceland's public broadcaster RUV.

It is second eruption in the region in less than a month as on December 18 last year, eruption started in Svartsengi volcanic system.

Iceland has more than 30 active volcano systems.