Forest fires are burning on the island of Madeira and residents living near wooded areas at the edge of the largest city fled in panic after one blaze engulfed houses and threatened others.

Portugal's state-run Lusa news agency says fires also broke out today outside the city of Funchal, a day after a fire that sent towering flames illuminating the city's outskirts.

Television images showed Funchal residents late last night using garden hoses to try to put out fires near homes and brooms to beat down flames on rooftops.

Lusa says 14 school children were removed from a school and 40 people were evacuated from homes because of fires.

Madeira Island, part of Portugal, lies in the Atlantic off the western coast of Africa.

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