Victorian prison inmate threatens to set himself on fire

An inmate in Victoria's Barwon Prison who reportedly strapped an explosive device to his body and threatened to set himself on fire has been arrested without incident.

Police were called to the correctional facility just before 9.30am and began negotiating with the 44-year-old man. 

Members from the Critical Incident Response Team (CIRT) attended the scene with Bomb Response Unit members and the man surrendered around 11.30am and was returned to custody.

Police are currently assessing the device the man claimed was a bomb.

Corrections Victoria spokesman Michael Newhouse said earlier the device was believed to have been made from ground up match heads.

"There is no immediate threat to staff or other prisoners, and no evacuations are required at this stage," he said.

"The situation is being closely managed by police and corrections authorities."