LAC-MEGANTIC, Quebec (Reuters) - Canadian police on Sunday raised the death toll from a runaway freight train explosion in the small Quebec town of Lac-Megantic to three, and said they expected to find more bodies.

The driverless train derailed and exploded in the early hours of Saturday, destroying dozens of buildings in the centre of the town.

The police said late on Saturday they had discovered the remains of one victim.

"Three bodies have been found," police spokesman Michel Brunet told reporters. "People have been reported missing or disappeared but... we are not going to issue a figure. We know there are going to be more deaths."