Canberra, Dec 25 (IANS): The Country Fire Authority (CFA) has downgraded an emergency warning for a fire near Euroa town in Victoria after it broke containment lines on Christmas afternoon.

The authority is now advising residents to "watch and act", though the fire is not yet under control, Canberra Times reported.

Despite the immediate threat having passed, the authority is still telling residents that leaving their homes is the safest option as conditions may change again suddenly.

Earlier Thursday, a CFA spokesperson said the fire was broken through containment lines on its southern-most corner. The fire started early last week, damaging three homes and 6,500 hectares of land.

It had been in rough terrain but travelled into open grassland. An emergency warning was issued shortly before 2.30 pm for people in Ruffy and Creightons Creek, with the CFA warning the fire was fast-moving and travelling in a south-westerly direction from Creightons Creek towards Ruffy.

The CFA spokesperson said water-bombing helicopters were flying from Melbourne and Mansfield to join 25 tankers already on the scene.

The spokesperson said firefighters had positioned tankers around assets to protect them.

A relief centre has been opened at Wesley Hall in Bury Street, Euroa.