UPDATE, 5.30pm:
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FIREFIGHTERS will continue to black out and monitor a blaze at Glenlyon overnight, after controlling it earlier in the day.
The fire covered about 25 hectares.
It began when a dormant burn-off re-ignited.
2pm: Crews have contained the main part of the fire.
"The main incident they were trying to contain was made under control at 1.33pm," a CFA spokesman said.
"Most of the CFA vehicles are on scene. They have sectioned off the fire in separate spots and strike teams are still blacking out."
9.40am: The grass fire has originated from a dormant burn-off that was started earlier in the week.
It is expected to be brought under control by 11am.
Commander Luke Kneebone said the property owner conducting the burn-off had "done everything right" and was caught out.
"He cleared around the burn-off, had water out there and conducted it early in the week knowing the warmer weather was coming. He just got caught out," Mr Kneebone said.
"This is a good lesson to property owners that they must thoroughly extinguish their burn-offs, otherwise they can reignite four days later like this fire."
UPDATE, 8.55am: CFA and Forest Fire Management Victoria crews are continuing to work to control a fire that threaten to impact the Wombat State Forest this morning.
CFA crews from Daylesford, Glenlyon, Tylden and Musk were called to the incident at 4.54am near Daylesford-Malmsbury Road.
The fire affected six hectares before crews were able to slow its pace at about 8am.
A bulldozer is now creating containment lines for the fire which was located in an "inaccessible and dense" area.
"The burning was fairly narrow but it was spotting ahead of the fire into some inaccessible areas," District 15 Commander Steve Poulter said.
"The winds were pretty strong, which made it spot ahead of the fire, but it hasn't yet affected the state forest area.
"We've managed to almost contain it right on the edge of the state forest."
Mr Poulter is confident crews can control the fire as forecast weather temperatures continue to drop.
"The winds won't get any stronger until 5.00pm today, which won't be an issue as it should be contained by then," Commander Poulter said.
The cause of the fire has not yet been confirmed.
EARLIER: A fire measuring 400 metres wide and 500 metres long is burning near Glenlyon.
A CFA spokesman said the fire started just before 5am.
It is located near Henrys Road and is not yet under control.
Sixteen CFA crews as well as crews from Forest Fire Management Victoria are in attendance.
Emergency Vic has issued advice for residents in the areas of Glenlyon and Bullarto.
It says the fire is travelling in a south-easterly direction towards Bullarto.
"There is currently no threat to you, but you should stay informed and monitor conditions," the advice reads.
Residents should keep the roads clear for emergency vehicles.
For more information on preparing for grass fires visit: www.cfa.vic.gov.au/plan-prepare/grassfires-rural.
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