Police are investigating a deliberately lit fire in Launceston early this morning which caused damage to two vehicles and a building.

Around 1.05am Tasmania Police and the Tasmania Fire Service responded to a report of a fire on Cameron Street, near the laneway off Wellington Street.

One vehicle was completely destroyed by the fire (estimated value around $39,000) another vehicle was damaged (estimated value around $3,000) and the rear of a building was damaged (value not yet determined).

Anyone who saw someone acting suspiciously in the area of the fire, or knows the current location of a red Mitsubishi Lancer registration H88TA which was seen in the area at the time, is asked to contact police.

Information can be provided to Tasmania Police on 131 444 or Crime Stoppers anonymously on 1800 333 000 or online at crimestopperstas.com.au