Dumped rubbish was set alight just yards from a block of flats in the middle of the night, according to fire crews.
Firefighters were called to Shakespeare Road in Ribbleton at about 1.05am on Saturday, to reports of a rubbish fire.
A spokesman said: “We seem to be starting with a problem with a fly tipper that then sets fire to whatever he or she wants to get rid of.
“He or she had actually made a bonfire about 10 feet away from a block of flats.”
Firefighters believe the dumped rubbish appeared to be trade waste, including chip board, builders’ rubble and plaster board.
The spokesman said: “It’s the second fire we’ve been to in the same spot.
“It’s creating a lot of smoke, and it’s very dangerous for that to be on fire - we don’t know what’s in it.”
The police, council and fire safety department were to be informed.