Residents evacuate fire-affected towns in Victoria

Residents in three coastal towns have been urged to leave as firefighters fear Victoria's Otways bushfire will be stoked by hot and windy conditions.

A breaking wave is seen through fire burnt trees in Separation Creek, Victoria. The coastal town was razed by bushfires on Christmas Day. Source: AAP

Three Victorian coastal towns are being evacuated as a dangerous bushfire that has already destroyed more than 100 homes continues to burn out of control.

Police and fire crews have been door-knocking homes in Kennett River, Grey River and Wongarra communities ahead of Thursday's severe weather conditions, which include temperatures in the high 30s and low 40s.

Fire Commissioner Craig Lapsley says people must evacuate the towns by 10am on Thursday or have a fire plan in place.

"Today, there will be an evacuation order issued around 10 o'clock to ensure that people have got the information and the mechanisms to ensure [they know] what's happening," he said on Thursday morning.

With the mercury already hitting 30C in parts of Victoria by 9am, firefighters fear Victoria's "sleeping" Otways bushfire will wake up on a hot and windy New Year's Eve.

Mr Lapsley said Victoria would stay warm well into the evening and that a severe fire danger warning was in place for most of the state.

"We've got severe fire danger ratings for the southwest, for central and western Gippsland.

"We've got very high in central Victoria and western Victoria, we've got total fire bans in five districts," he said.

"People need to understand what they mean when we're moving into what is New Year's Eve and also thinking through what you're doing through the evening."

Victoria's Premier Daniel Andrews said hundreds of firefighters, 60 aircraft and a combination of tankers and other information-gathering technology would be used to prepare for the blaze, which has grown by 500 hectares in the past 24 hours.

"We should just spare a thought for all of those who will be working tonight, who won't be having a drink, won't necessarily be out there celebrating," he said on Thursday.

"They will be working hard as they do every hour of every day. We're in their debt and we wish them a very happy New Year as well."

More than 400 personnel from the CFA, MFB, Parks Victoria and the Department of Environment are working to contain the fire.

The Jamieson Track blaze razed 116 homes in Wye River and Separation Creek on Christmas Day, and authorities fear the three other towns are now in the path of the fire.

Incident controller Alistair Drayton earlier said while the fire had been asleep since last week's destruction, fire crews feared it would wake up in Thursday's hot and windy conditions.

If the forecast conditions do not eventuate on Thursday, Kennett River, Grey River and Wongarra residents will be able to return at 10pm.