Firefighters were on scene in the suburb of Kooyong within minutes and contained the damage of the fire to a club kitchen.
The fire broke out just before midday and caused a mass evacuation of the tennis club.
“I just said, ‘Woah, Kooyong’s on fire, that’s a surprise’,” one witness told 9News.
“We could see everyone being evacuated. They were calm but then there were flames and we knew it was going to be quite serious.”
The fire filled the surrounding area with a smoky haze and traffic slowed down as fire crews attempted to control the blaze.
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Firefighters arrived within six minutes to find black smoke pouring from the roof.
Authorities blocked off one north-bound lane on Glenferrie Road directly outside the venue due to the fire.
The tennis club has been the home of several Australian Opens and has also hosted several Davis Cup ties and finals.
This month, the club reportedly called in accountants to investigate a dramatic $2.3 million cash loss.
The new damage bill for the club comes just weeks ahead of the Kooyong Classic, a lead in for the Australian Open.