SINGAPORE - Beaches on Singapore's Sentosa island were closed on Saturday after an oil spill spread from a nearby shipping terminal to the tourist haven south of the city-state.

A Reuters witness saw tape cordoning off the oil stained waters and sand of Tanjong Beach from visitors.

"Oil slick spotted. Clean up in progress. Please stay clear of water," read a sign posted on the beach.

An advisory on the Sentosa website said the waters of Tanjong, Palawan and Siloso Beach are closed for cleaning and swimming and sea activities are not allowed.

The oil spill had spread from Pasir Panjang Terminal, less than 10km from the island popular with tourists and locals, after a Netherlands-flagged dredger struck a stationary Singapore-flagged bunker vessel on Friday afternoon.

Singapore's port authority said in a statement on Friday evening some oil from the damaged cargo tank on the bunker vessel had spilled into the water and "the affected cargo tank has been isolated and the spill contained".

"The oil spill clean-up operation is currently in progress," the Maritime and Port Authority of Singapore said on Friday.

(Reporting by Xinghui Kok; Editing by Sam Holmes)