More than 14,000 people have fled their homes as fears of an eruption rose after Indonesian authorities set the alert for a volcano on the resort island of Bali to its highest level, the Deutsch Presse-Agentur, DPA, has reported.

"Authorities late Friday set the alert level for Mounting Agung in Bali's Karangasem district to Level 4, indicating that an eruption could be imminent."

The situation is worrying and there are fears of a sudden eruption, said government vulcanologist Gede Suantika.

Villagers living nearby were transported by trucks to temporary shelters in government buildings, sports halls and  on open fields, said Putu Juli Adnyana, an official at an emergency post set up to care for the displaced.

More than 10,000 personnel have been deployed to assist with the evacuation, said Sutopo Nugroho, a spokesman for the the National Disaster Management Agency. "Our focus is now evacuating the residents and provide them with their basic necessities such as food, water and sanitation," he added.

About 80,000 people live near the volcano. Mount Agung, which stand 3,030 metres tall, last erupted in 1963-64, killing about 1,500 people. The volcano is popular among local and foreign trekkers.

Indonesia sits on the Pacific Ring of Fire, an area known for frequent seismic upheavals and volcanic eruptions. The country is home to about 130 active volcanoes.