The quake, measuring 3.9 magnitude, was recorded by Geoscience Australia at 1.13am on Wednesday. 

There have been no reports of damage or injuries, but residents in nearby areas took to social media to report the tremors.

The Seismology Research Centre in Victoria reported that the earthquake was very shallow, but could be felt up to 50 kilometres away.

Wollondilly state Liberal MP Jai Rowell took to his Facebook page to reassure people that there was no need to panic.

"It is hard to believe we have had an earthquake in Wollondilly but we have," he said.

"Please don't panic as it was a small one in the scheme of things but stay alert and report any emergency to the relevant emergency service as required."

According to Geoscience Australia the area is prone to seismic activity, with nearly 50 earthquakes recorded in the past 50 years.

The most serious was a 4.8 magnitude tremor in 1999.