The eruption occurred at Lokbatan in Garadag district at around 10.00 local time on 4 February, 1news.az reported.
No flames were seen during the eruption.
Azerbaijan's Ministry of Ecology and Natural Resources reports that new cracks have emerged on the western and eastern slopes of the volcano following the eruption.
Lokbatan has some of the most active mud volcanoes in the world.
The first recorded eruption was in 1829 and over 20 eruptions have been recorded since. The last eruption was in 2001.
The mud volcanoes have recently been more active, as a result of seismic activity in the southern Caspian.
Mud volcanoes are a sign of the presence of oil and gas underground. They are created when mud and sand up to several kilometres beneath the Earth's surface are pushed upwards by compressive forces and expelled.
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