Bushfire still burns near Ballarat

An out-of-control bushfire burns near Ballarat but no longer threatens homes after residents were told to leave overnight.

An out-of-control bushfire burning south of Ballarat no longer poses a threat to homes. (AAP)

An out-of-control bushfire burning south of Ballarat no longer poses a threat to homes.

A watch and act alert overnight has been downgraded to an advice message for Dereel and Mount Mercer despite the medium size bushfire still burning in the area.

Smoke is still visible in the area and emergency crews are still fighting the blaze.