Bushfire near Vic border downgraded

A bushfire threat along the Victorian-NSW border has been downgraded.

The grassfire in Tangambalanga was downgraded to a watch and act alert about 3.30pm on Sunday.

The fire is still out of control, but firefighters have been able to hold the spread of the fire at the Gundorwing Road.

Residents are advised to remain close to shelter in case conditions change again suddenly and continue to stay informed and monitor conditions.

The fire is burning at Tangambalanga, 24km south of Wodonga, putting residents in Kiewa, Tangambalanga and Red Bluff in danger.

The CFA had earlier issued an emergency warning for the fire on New Year's Day.