An elderly Australian woman seriously injured after a sinkhole opened under her feet in Whakarewarewa Village has been transferred to Waikato Hospital.

Emergency services were called to the living thermal village in Rotorua yesterday afternoon after the woman fell into a fumarole (sinkhole) on a footpath.

A Te Whatu Ora Lakes spokeswoman today said the woman's condition was "serious but stable".

Rotorua Lakes Council said today it was notified of the incident on Wahiao Drive by a local representative from the village just before 2.15pm on Thursday.

A person fell down this tomo (sinkhole) in an incident at Rotorua's Whakarewarewa Village. Photo / Aukaha News

"A crew from council's roading contractor was immediately sent to the village to inspect the site and make it safe," a media statement said.

"The area around the hole remains cordoned off and the road is closed, with signage in place."

The council's press release said work to fix the road would start as soon as possible and other roads in the village would be checked as a precaution.

The council said it will stay in touch with its contacts in the village to keep residents updated on progress.

The road remains closed. Photo / Aukaha News

GNS Science volcanologist Brad Scott said sinkholes were a typical phenomenon in geothermal areas.

"Where there is high steam flow to the surface and that steam reacts with the shallow near surface ground water, acid solutions [form].

"The acid solutions alter the local rock and soils, this induces clay formation [that can be] washed from the local environment by water seeping down, especially under high-intensity rainfall."

Scott said the washing away of the clays and fine material would create a cavity and eventually collapse.

"Often there are no significant warnings and it depends on the ground surface in the area."

A person fell down this tomo (sinkhole) in an incident at Rotorua's Whakarewarewa Village. Photo / Aukaha News

Scott said the collapse or the formation of a sinkhole was usually the end of the process.

"The cavity may have been forming for years. Once it is present it can be fenced off and made safe."

Whakarewarewa Village general manager Mike Gibbons said the elderly woman slipped into a geothermal hole near the entrance to the tourist attraction and said she had suffered serious burn injuries.

Her husband received moderate injuries trying to pull his wife from the hole, Gibbons said.

The couple were from Perth, Australia.

Whakarewarewa Village is a living thermal village in Rotorua. Photo / NZME

Gibbons understood there was geothermal activity on Wahiao Drive and the "ground opened up". This could have been due to the "extra amount of rain" in the area but at this stage was unconfirmed.

"Our understanding is that the wife slipped into the hole and she was eventually pulled from that and taken care of by our staff," he said.

"We need to acknowledge some of these situations can be also stressful on the staff that were involved in the recovery process."

A video at the village showed a hole of about 2m by 1m wide and 1.5m deep on a pathway into the village. Steam could be seen coming out of the hole.

Aukaha News said locals first saw steam coming out of the road about a week ago and a cone was put in place then.

The hole was past the bridge going into the village, crossing over Puarenga Stream.

Fumaroles are openings in the earth's surface that emit steam and volcanic gases, such as sulfur dioxide and carbon dioxide.