Taal Volcano spews white steam and ash as seen from Balete, Batangas province, south of Manila, Philippines. AP

Taal volcano, which sits in a lake south of Manila, exploded with a "short-lived" burst at 7:22am (2322 GMT), the Philippine Institute of Volcanology and Seismology said in a statement.

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It warned further eruptions were possible, which it said could trigger dangerous, fast-moving volcanic flows of gas, ash and debris, as well as a tsunami.

The seismological agency "strongly" recommended residents living in vulnerable communities around the lake be evacuated, as it raised the alert level from two to three.

The initial eruption was followed by "nearly continuous phreatomagmatic activity" that sent plumes stretching 1,500 metres (4,900 feet) into the air.

A phreatomagmatic eruption happens when molten rock comes into contact with underground or surface water, said Princess Cosalan, a scientist at the agency, likening it to pouring "water on a hot pan".

Agence France-Presse