A rural NSW town is devastated that its Christmas tree was destroyed by arsonists less than a fortnight away from the holiday.

The decorated tree, which was put up on Smith Street in Kempsey just last week, has been burnt down in what police deemed a suspicious blaze about 11.15pm yesterday. 

Kempsey Shire Council will review CCTV footage and work with NSW Police to find those responsible.

A struggling NSW town is devastated that its Christmas tree was destroyed by arsonists less than a fortnight away from the holiday. Kempsey’s Christmas tree was burnt down overnight. (Facebook)

“We are deeply disappointed and saddened for our community and for the council staff who, over many months, worked hard to procure, decorate and install the tree after what has been a challenging year for the shire,” council said in a statement, referencing the floods that have battered the region.

Detective Inspector Mark Rogers said officers were canvassing local businesses to understand how the fire started and would not rule anything out.

“It’s obviously very, very sad coming into the festive season for Kempsey to lose a Christmas tree, which is quite disappointing,” he told reporters this afternoon.

“But we’ll make those inquiries and treat it as suspicious for now, and establish whether or not something has happened.”

Kempsey residents were upset by the burning down of the tree, and took to social media to condemn the vandalism.

“Can’t have nice things on the ground these days,” one said.

“So sad that some people are bent on destroying a little bit of joy for others,” another added.

”Such a shame, was a beautiful Christmas tree, nicest one we have had,” a third said.

A struggling NSW town is devastated that its Christmas tree was destroyed by arsonists less than a fortnight away from the holiday. Mayor Kinne Ring was upset that the Christmas tree was burnt down. (Nine)

Mayor Kinne Ring said residents were understandably upset due to the “immensely tough” year they had, but added the incident would bring the town together.

“This doesn’t have to be a negative. We’re still going to have a fantastic Christmas,” she told 9News.

Kempsey Shire Council are removing the burnt tree’s remains over the coming days.

Ring said she has already been contacted by local businesses and organisations who have offered to pitch in to replace the tree.