It took firefighters from Buckinghamshire Fire and Rescue around two hours to extinguish the flames, which saw the roof of the stage cave in. Although three Pinewood staff were in the building when the fire started, no-one was harmed in the blaze.
The set had been used as a sound stage for the forthcoming film Casino Royale.
Firefighters are expected to remain on the scene until 1pm today, cooling off the 16 acetylene cylinders in the building, two of which had exploded in the fire.
The cause of the fire is still unknown.
Buckinghamshire Fire and Rescue Service's spokesman Fraser Pearson told Broadcastthe outside of the building was 'blackened and buckled' and part of the roof had caved in.
A Pinewood Shepperton spokesman said: 'The Board believes the 007 stage will need to be demolished and rebuilt. There has been no significant collateral damage to any other assets at the Pinewood site. Its preliminary view is that this is unlikely to have any material impact on the financial performance of the company for the full year.'
The rest of Pinewood Studios, apart from the 007 stage, is expected to be fully operational by the end of today.