UPDATE 1.30pm: The 39-year-old driver of the Holden Commodore is in a stable condition and has been taken to Bendigo Health, an Ambulance Victoria spokesperson said.
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She said the man is "shaken, has a sore back and cuts", but is not in a serious condition.
Ambulance crews received the call just after midday to attend the crash at the intersection of Eaglehawk Road and Cunneen Street, Long Gully.
The 68-year-old male driver of the Ford Falcon suffered cuts but did not need to be transferred to hospital.
UPDATE 12.50pm: Sergeant Mick McCrann says police have measured a 51-metre tyre mark on the approach to the crash scene on Eaglehawk Road in Long Gully.
He said a Holden Commodore travelling north on Eaglehawk Road crashed into the rear passenger side of a Ford Falcon exiting Cunneen Street.
The 39-year-old male driver of the Holden has been taken to Bendigo Health for observation and for drug and alcohol tests.
The 68-year-old male driver of the Ford appears uninjured.
There are long tyre marks in the lead-up to the crash scene.
EARLIER: Emergency services are on the scene of a crash involving two cars at the intersection of Eaglehawk Road and Cunneen Street, Long Gully.
The crash was between a Holden Commodore and Ford Falcon.
The male driver of the Holden remains trapped in the vehicle. The car has sustained extensive damage.
The driver of the Ford, also a male, appears uninjured from the crash.
Three fire crews, two ambulances and the SES are at the scene.
Traffic on Eaglehawk Road is being diverted around the scene.
More to come.