A huge sinkhole was seen oozing bright green liquid in a Canadian street.

Sinkhole

Sinkhole

The alarming sight was spotted in the city of Toronto as neon green liquid was spotted underneath the road.

However, it turned out that the liquid's green appearance was actually caused by dye that had been added by workers at Toronto Water.

A city spokesperson told 680NEWS: "Toronto Water staff inspected the sinkhole yesterday evening. Sinkholes can be the result of a damaged or collapsed sewer.

"In order to determine if the sinkhole is connected to the underlying sewer, a dye test was conducted using a green non-toxic dye, which is added to the sinkhole while monitoring the closest manhole downstream to look for traces of the dye in the sewer."