According to Xinhua, the scare was sparked off when smoke was spotted at about 1: 30 pm (local time).
Quoting officials the news agency said that the elevator motor inside the statue's pedestal overheated leading to the smoke emanating from it.
There no reports of injuries or damage to the statue.
One of the prime attractions in New York, the Statue of Liberty was closed to public following the 9/11 attacks. It was later thrown open to the public on Jul 4, 2009, which marked America's 233rd birthday.