At least 25 people have been killed in a Mexican bar fire that police say was set deliberately by gang members.

Another 11 were badly injured in the blaze in the Caballo Blanco (White Horse) bar in Coatzacoalcos, a port city in Veracruz, on Tuesday night.

Survivors said men believed to be gangsters blocked the exits before setting the venue on fire.

Mexican media reported that the bar was peppered with gunfire and Molotov cocktails were thrown inside.