TWO students who suffered burns after a costume was set on fire during a fancy dress party had been joking about the flammability of the sheep outfit just moments before the blaze was started.

A 20-year-old student suffered burns to his back, arms and neck, and particularly his left hand, while a 19-year-old who helped to smother the flames suffered superficial burns to his neck.

Both were taken to the University Hospital of North Staffordshire but have since been released.

A 19-year-old man was arrested after the incident on Thursday night and later bailed.

Students who witnessed the incident at Staffordshire University's Students' Union bar LRV, in Leek Road, Shelton, said bar staff acted quickly to put out the flames and evacuate the building.

First-year journalism student Natalie Clarkson, aged 19, of Boughey Road, Shelton, said: "I was in a group dancing with some of my friends when I felt the heat from the fire and turned around to see the guy.

"Everyone was evacuated straight away, and when we were stood outside in the rain there was a lot of concern about him. It was very shocking how close he was to us."

Fellow student Emily Oliver, who also lives in Shelton, said: "I was filming my friends dancing when the incident happened, and the student that was on fire ran over in our direction when he was frantically trying to get his costume off.

" His costume was made out of cotton wool, so the flames spread really quickly and it nearly covered his whole body.

"Luckily it wasn't really busy in LRV and no-one else's costume caught fire."

The incident happened during an ABC night, where students dress up as something beginning with a letter they have been given. Earlier the student, who has not been identified, had picked up an award for his costume.

Student Holly Ranford, writing on the StaffsLive website run by the university, said people had been joking about the outfits' fire risk moments before the incident.

Former Staffordshire University student John Shersby, of Leek Road, Shelton, was DJing at the LRV when it happened. The 31-year-old shop worker said: "I saw a bloke in flames in the corner, but most people didn't notice it until the smoke alarm went off.

"The doormen were very quick to act and rolled him over to try and put the fire out. It was an eventful night."

A students' union spokesman said: "First aid was immediately administered to the two students and they were subsequently taken to hospital.

"The union has since been informed that the student's burns are below 10 per cent and should have no lasting effects, and that the student who assisted has been discharged."

A spokesman for Staffordshire University said: "We are satisfied that the actions taken following the incident were appropriate and the matter is now being fully investigated by police."

Inspector Rob Thompson, from Staffordshire Police, said: "The circumstances of the incident are at a very early stage of enquiry and I would appeal that any witnesses contact us on 0300 123 44 55 or Crimestoppers on 0800 555111."