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POLICE have been called to a car fire in Castlemaine.

Castlemaine Police Senior Sergeant Ian Brooks believes the car's engine has caught fire.

"It's on Johnstone Street on the Midland Highway," he said.

"The car's on the side of the road."

Meanwhile, a young woman has had a lucky escape after swerving to avoid a kangaroo this morning near Newstead.

The woman ran off the Newstead-Creswick Road and into surrounding trees about 8.30am.

Senior Sergeant Brooks said the car was a write-off.

"She's very lucky she only sustained minor injuries," he said.

"She's very, very lucky."

He said the woman was in her 20s and had been on her way to work.

"It was in 100km/h zone so she was doing between 90km/h and 100km/h," Senior Sergeant Brooks said.

The car hit the trees with enough force to dislodge the engine from its fittings.