Falls Festival organisers are deliberating whether the event will go ahead near fire-affected areas on Victoria's surf coast.
A midday meeting with emergency services has finished and festival organisers say they'll make a decision later on Saturday.
Falls Festival is due to take place in Lorne from Monday through to New Year's Day.
The 2000-hectare Jamieson Track fire was earlier threatening to advance on the tourist town, but residents were told they could return home about 9am after rain helped firefighting efforts.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"We will have a clear decision on how the festival will proceed for you all by 5pm today," a statement said on Saturday afternoon.
"We understand your need to be informed, the situation is changing from hour to hour and we are working through this as quickly as possible.
"We ask for your patience and understanding, back soon."
The fire is not yet under control and a watch and act remains in place.
Emergency Management Commissioner Craig Lapsley said recent rain in the area would assist decision making about the event.
"If it was dry, if it was hot, it would be a different decision," he told reporters on Saturday morning.
Authorities gave festival organisers modelling which showed the fire's potential movements.
"To talk about what it means for 17,000 people to be in the bush for a concert for up to four days," Mr Lapsley said.
He does not have the power to cancel the festival, but could make a recommendation to police.
The road to Lorne has been reopened, but it remains closed south of the town.
