Six pumps and an aerial platform ladder are in attendance according to West Sussex Fire and Rescue Service.
Residents living nearby have been advised to keep their doors and windows closed.
Posting on social media, West Sussex Fire and Rescue Service said: "We are currently dealing with a large fire at Stane Street, #Chichester. 6 pumps and the aerial ladder platform are in attendance. Please avoid the area and if you live nearby, remember to keep your doors and windows closed."
The fire is at Chichester's amenity tip, it has been reported.