A soldier playing with a cigarette lighter started the large fire in occupied Famagusta last week, Turkish Cypriot media reported on Friday.
Based on an investigation, KP Daily said, the fire in Varosha was started by soldier playing with his lighter.
The soldier panicked and fled the area as the fire spread. Other soldiers tried to put it out but it quickly got out of control.
The blaze started at around 3.30pm and was put out some five hours later with the help of helicopters from the British military bases.
It burned wild shrub, damaged buildings and came close to a military camp.
Varosha is under the control of the Turkish military.
It has been a ‘ghost city’ since its Greek Cypriot inhabitants fled in August 1974 as Turkish troops advanced.