Two appliances from Newport Fire Station, a water bowser from Ventnor and two fire officers are in attendance at the Westridge Skip Hire owned site off Briddlesford Road, opposite the Lynn Bottom Civic Amenity site.
Crews were called to the scene shortly after 08:00, with further resources requested around 30 minutes later.
The large pile of wood is smouldering, however is not currently posing any immediate threat to any property or life.
It is expected fire crews will remain on scene for some time to come.
UPDATE @ 14:05 – The Environment Agency have been called to the incident to assess any risks to a nearby water course.
Firefighters spent almost three hours at the scene this morning, with fire officers due to return to the Briddlesford Road site this afternoon.
The large pile of wood has been broken up and will be left to burn itself out.