Network Rail said the train was heading from Ardwick to Carnforth. The line is now closed between between Manchester Piccadilly, Preston and Newton.
The train is a diesel. The smell from the fire is overpowering. Several surrounding streets have now been closed.
More top news
A "monster" who bludgeoned his former girlfriend and her mother to death with a hammer has been jailed for at least 29-and-a-half years.
Karen Danczuk appeared on ITV's Loose Women as part of their 'It's never too late to tell' campaign.
Top footballers star in an Football Association campaign aimed at helping to ensure every child feels safe playing football.