A VOLCANO touted as the smallest in the world has been discovered – and it’s shorter than a set of cricket stumps.

Mysterious substances were found oozing out of the tiny geological formation in the city of Cusco, southern Peru.

A group of locals stumbled across a raised, blackened mound around 60cm tall in the Peruvian mountains.

It looks like a small pimple in the earth‘s crust.

It has a shallow conical shape – just like classic volcanoes – and a crater at the peak.

Material has evidently been seeping from the top and down the sides, before solidifying to form a hard, dark casing.

The whole structure stretches over just a few square metres.

Locals reported that gases and other unknown substances were seeping from the mouth.

The villagers promptly declared it the “smallest volcano in the world”.

Wearing a traditional poncho, community leader, Arturo Mamani, dubbed it “The Eagle’s Eye”.

Mamani and his family left traditional offerings of coca leaves at the base as a gesture of respect.

The mountain town hit the headlines the following day, and a growing number of curious spectators visited to take a look.

After learning of the extraordinary feature, the authorities cordoned off the area and called in the experts.

Hernando Tavera, head of the Geophysical Institute of Peru (IGP), said The Eagle’s Eye is not in fact a volcanic vent, but rather a small cone of earth, clay and water known as a mud volcano.

He said it is a natural structure where mud, water, and dissolved gases emerge from lower levels of soil.

It does not involve magma or any volcanic activity.

Tavera explained: “This type of phenomenon occurs when gases such as methane, carbon dioxide, and others make their way to the surface and carry clay sediments mixed with groundwater.

“The result is a mound with a central hole, a cone with a crater, which leads to it being considered a ‘volcano’ due to its shape.

“However, its origin, type of activity, and the materials it emits bear no relation to the active volcanoes found in the south of the country.”

Although it does not pose a volcanic risk, Tavera warned that it could negatively impact the environment – with the potential to contamination of nearby water sources and crops.

The IGP is continuing to monitor the mud volcano, also known as a mud dome, to determine if it poses any kind of risk to the local community.