At least 25 people sustained minor injuries in an explosion in the southern Swedish city of Linkoping on Friday, police confirmed.

The explosion struck a residential area, shattering windows of two buildings and damaging balconies.

The cause of the explosion was not immediately clear, but police said they are not treating it as a terrorist act.

"There is nothing that indicates that this incident is terror-related, we do not see that," said police spokeswoman Asa Willsund.

The site and surrounding area have been blocked off, while ambulances and fire trucks have been dispatched to the scene.