A koala which was injured in a massive bushfire in Australia has been found with burnt paws and singed fur.

Local resident Clint Woods spotted the animal sitting in the debris of a burnt tree in a scorched field near Port Lincoln in South Australia state.

Woods said he gave the koala some water before it was taken to a local animal hospital for treatment.

"He had a bit of water but he's not looking too well really," Woods said.

The bush fire, which started on Sunday, destroyed seven homes and was threatening a town near Port Lincoln, local media reported.

But according to the Australian Broadcasting Corporation, firefighters gained the upper hand on Monday following some favourable weather conditions.