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All birds at the farm in Goosnargh, Preston, are due to be culled and animal movements have been restricted within a 10km "control zone".
Defra said the decision to cull was "based on the clinical symptoms and emerging laboratory findings".
The risk to public health was very low, a spokesman added.
"We have a strong track record of controlling and eliminating previous outbreaks of avian flu in the UK," he said.
"The outbreaks in Yorkshire last year and Hampshire in February were both successfully contained, allowing restrictions to be lifted at the earliest opportunity."
the bird flu on a Lancashire farm has been confirmed as the kind which can infect humans, the Department for Environment, Food and Rural Affairs announced this morning. A cull of 170,000 chickens and turkeys has been carried out at the farm where the H7N7 strain - which can infect humans - was detected. But Public Health England insist the risk to public health from this strain is very low and the Food Standards Agency said there is no food safety risk. The virus is highly contagious among birds and can be lethal to the flocks. But it is a separate strain from the deadly H5N1 which has killed hundreds of people across the world. A six-mile surveillance zone and an inner 1.8-mile protection zone have been put in place around the farm near the village of Goosnargh and humane culling of 170,000 chickens and turkeys at the farm is continuing, officials said.