Tasmania Police is investigating a fire that destroyed a shed in Nimrin Street, Montagu Bay early this morning.

Tasmania Fire Service and Tasmania Police attended the fire about 1am. The fire was extinguished, however, about $50,000-$70,000 worth of damage was caused to the shed and a vehicle.

Police would like to speak to anyone who may have seen people acting suspiciously in the area last night and the night before.

Anyone with information should contact Tasmania Police on 131 444 or Crime Stoppers anonymously on 1800 333 000 or online at crimestopperstas.com.au