The fire broke out in the night to Saturday in the community of Andoy on the Vesteralen islands.

One man could save himself from the flames, while five people - including four children, were declared missing.

The five people have now been found dead at the scene, police said on Sunday evening. The bodies have not been identified yet.

"With a heavy heart we ascertain that this fire claimed the lives of five people," police said in a statement.

"The police is relieved that we could find those that were missing, but this is a difficult day for those concerned and for the local community," the statement said.

The man who survived had to walk barefoot for several kilometres before reaching neighbours, who called the emergency services, according to media reports.

The cause for the fire was not known, although police said it was likely an accident.

Australian Associated Press