Large fire in Melbourne's north west comes within metres of homes

A large grassfire is still burning at a former ammunitions factory site in Melbourne's north west, however authorities says the threat posed by the blaze has been significantly reduced.

Dozens of firefighters from Fire Rescue Victoria and Country Fire Authority have spent the afternoon battling the blaze at Raleigh Road in Maribyrnong, which began about 12.30pm.

The flames came within metres of residents hosing down their fences as homes were evacuated.

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More than 20 firetrucks have been on scene and water bombers have been used from above after collecting water from the nearby Maribyrnong River.

According to Fire Rescue Victoria, firefighters battled the blaze on two fronts.

They worked to prevent the fire from jumping the Maribyrnong River, where it would have been able to move uphill towards a large number of homes.

Earlier this afternoon, people were being advised to avoid the Maribyrnong area to give way to emergency services.

Those living in Melbourne's north west - in suburbs including Avondale Heights, Keilor, Port Melbourne, Sunshine and Tullamarine - were being warned there is currently no threat to their safety but that they should monitor the situation.

However, as of about 6pm, VicEmergency has advised the threat has been reduced and residents are able to resume normal activities.

The fire has sent significant amounts of smoke across Melbourne's north west.