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Grassfire threatens homes north of Melbourne

An emergency warning has been issued for a grassfire burning north of Melbourne, with authorities warning residents they are in danger and it's too late to leave.

The warning to Flowerdale and Yea residents was issued at 4.14pm on Tuesday for an uncontrolled fire at Spring Valley Rd travelling north.

"If you have not already left, the time to safely evacuate has now passed. Take shelter indoors immediately. It is now too dangerous to leave," the warning from the Country Fire Authority says.

"The extreme heat is likely to harm you well before the flames reach you".

More than 40 fire truck crews and several aircraft are fighting the fire.