The flames can be seen from the nearby city of Piriapolis, one of the main seaside resorts on the Atlantic coast.
The fire started in the early hours of this morning. So far firefighters have prevented damage to homes and a campsite which were evacuated.
The strong winds are driving the advance of the fire towards the area of Cerro Pan de Azucar, where for the last few weeks the crossing has been cut off due to the high temperatures and the danger of forest fires.
At the beginning of the morning, the fire was unstoppable due to the winds and the large amount of vegetation, the fire department stated. An intervention of the Air Force is expected today in order to contend the flames from above.