Gardaí are probing a suspected case of arson this week in the vicinity of the Chapel Street/Jocelyn Street junction.
The suspicous incident happened on Wednesday night at Number 2 the Old Gardens.
The scene was cordoned off on Thurday so a forensic examination could take place.
It is believed that the fire started at approximately midnight on Wednesday/Thursday and was set deliberately.
The fire was set in a currently vacant building which the Dundalk Democrat understood had been sold in the recent past.
No one was hurt in the incident and the fire was brought under control and had been fully dealt with within a two hour time frame on Thursday morning.
A spokesperson for the Gardaí told the Democrat that it suspected that homeless people may have been responsible for the blaze.
“It was lucky that the fire did not spread as the area is surrounded by residential buildings,” the spokeperson said,
The scene was cordoned off to allow for an technical examination. Anyone with any information is asked to contact Dundalk Garda Station.
Pictured, right, the side street off Chapel street where the fire took place last week