A strong earthquake struck southern Greece on Sunday, killing two villagers, injuring another 125 people and damaging dozens of homes, authorities said.

Panicked residents ran out into the streets and some jumped from balconies when the quake, measuring 6.5 on the Richter scale, struck at 1525 local time (1225 GMT), 54 km (33 miles) south of the western port city of Patras.

The village of Kato Achaia near the epicentre appeared to be hardes hit by the tremor, which was felt as far away as Italy.

One village man was found dead under a collapsed wall while an 80-year-old woman from a nearby village died in hospital of a heart attack after being injured.

A Reuters witness said about half a dozen old houses at the entrance of the village had collapsed and one church had visible damage.

Aftershocks were continuing, with many residents in the region set to spend the night outdoors and in cars, too scared to return to their residences.

"Everyone is out, sitting in the village squares, while firefighters and emergency services are everywhere," said Reuters photographer Yiorgos Karahalis.

Greek television showed panicked villagers rummaging through rubble trying to find belongings, while more were shown wandering the streets in disbelief and fear.

"I was so scared. I've never felt anything like this before," Patras student Vassilis Lambropoulos told Reuters by phone. "We rushed into the street and bits and pieces were falling off buildings."

GIRL RESCUED

At least four people, including a 9-year-old girl, who had been trapped in collapsed houses were rescued soon after the quake, officials said.

Most of those hospitalised had scrapes and bruises but no serious injuries, authorities said. The Tourism Ministry said there were no foreigners reported among the injured and there was no damage to hotels.

"My thoughts are with our fellow citizens who are suffering," Greek Prime Minister Costas Karamanlis said in a statement. "The state will stand by all those being tried."

The national Athens-Patras highway was briefly cut off after a landslide caused by the quake and the main control tower of the Greek air force military base in the nearby town of Andravida was damaged and evacuated.

"We will definitely have more aftershocks, which is a natural phenomenon, but people should not panic and they should listen to local authorities," Athens Geodynamical Institute director Gerassimos Papadopoulos told reporters.

The quake was felt in Athens, where 143 people were killed in a 1999 earthquake measuring 5.9 on the Richter scale. Greece is often rattled by quakes, most causing no serious damage.

In January an earthquake measuring 6.5 on the Richter scale struck Greece, the epicentre again in the Peloponnese peninsula.