Firefighters are currently in attendance on Thornbush Road.
UPDATE 11pm: One unit remains on the scene to dampen down the flames over the next few hours.
UPDATE 8.30pm: The fire is reported to be “under control” within the building.
Firefighters are using two hose reel jets and one main jet to tackle the flames.
Some residents have reported that their water is cut off due to the fire.
Two fire engines and a height appliance are on the scene.
A fire spokesman said: “We are currently in attendance at Thornbush road, at a fire in a derelict building.
“It is a well developed fire but we have no further details at this time.”
Police are also on the scene and have closed the road.
Inverness central councillor Emma Roddick posted on Facebook: “I am aware of the fire in South Kessock this evening and am making enquiries as to the effect of it on the surrounding community, including how long the water supply is expected to be turned off.
“As reported by the press, the fire service say the fire is under control.”
More to follow.