A worker has died after an explosion at a boat yard in West Melbourne. 

The 49-year-old man was welding on the side of a ship when the explosion occurred at a business on Enterprize Rd about 10am on Wednesday.

He was rushed to hospital with life-threatening injuries, where he later died. 

Know the news with the 7NEWS app: Download today

Victoria Police said the death is not being treated as suspicious and a report will be prepared for the coroner.

WorkSafe Victoria has been notified and said it will make enquiries into the incident to determine whether any further action is required.

It is understood that the incident took place within a privately operated tenanted site.

The death is the 24th confirmed workplace fatality in Victoria this year.