A 51-year-old Austins Ferry man has been arrested and is currently assisting police with their inquiries after a cannabis hydroponics set-up was uncovered following a fire at an Austins Ferry property overnight.

Police and the Tasmania Fire Service were called to the Amaroo Road residence about 6.30am this morning, where a shed was found alight.

The fire was quickly extinguished, and a hydroponics set up involving a number of cannabis plants was located in the shed.

A TFS fire investigator has determined the cause of the fire to be an electrical fault. The damage has been estimated at $50,000. No one was injured in the fire.

The investigation has been affected by the potential presence of asbestos in the shed.

Anyone with information should contact Police on 131444 or anonymously through Crime Stoppers on 1800 333 000 or online at crimestoppers.com.au