Electricity company AusNet has announced a $300 million settlement with the Marysville victims of the Black Saturday bushfires.

The agreement, which is subject to court approval, came on the eve of the sixth anniversary of the bushfires and just before a class action trial was due to begin in Victoria's Supreme Court.

Forty people died and an estimated 500 homes were destroyed when the blaze, also known as the Murrindindi fire, broke out on February 7, 2009.

The class action, run by law firm Maurice Blackburn, alleged the fire was sparked by a break in an electrical conductor on a power pole near the Murrindindi Saw Mill.

Lead plaintiff Dr Katherine Rowe said the settlement would not bring back what was lost in the fires.

"This settlement will not replace loved ones, lost mementoes of significant events, homes and livelihoods destroyed," Dr Rowe said.

"[Nor does it] erase the traumatic and intrusive memories of those who fled the fire or fought for their lives."

But she said it helped to know that the fire was "not caused by someone's deliberate action lighting the fire".

"Although there was a power outage that afternoon it has been acknowledged that the power was briefly on around the time the fire started and the case alleged a plausible explanation for the fire's commencement," she said.

"It is important that electricity providers maintain their assets to the highest standards required of them and that they realise the start importance of doing so especially in Victoria which has such high fire risks.

"Otherwise there can be devastating and catastrophic consequences that impact on many people, communities, livelihoods and assets and that these events can have lasting impact on those affected."

But the company denied its power lines were to blame.

In a statement to the Australian and Singapore stock exchanges the company said: "The settlement is without admission of liability by AusNet Services or any other party".

Brooke Dellavedova, a lawyer representing the victims, told 774 ABC Melbourne the result meant about 1,100 claims would be compensated.

"Assuming the court approves the settlement, those people will put in claims, we'll assess the claims and work out compensation for them," Ms Dellavedova said.

"It doesn't change the fact that it happened but it does help people start to rebuild."

Payout includes $29m State Government contribution

The company's general counsel and company secretary, Susan Taylor, outlined the details of the settlement in a statement.

AusNet will pay more than $260 million, maintenance company Utility Service Providers will pay $10 million and the Victorian Government will contribute $29 million.

"The events of Black Saturday had tragic consequences, and AusNet Services extends its deepest sympathies to those affected," Ms Taylor said.

"AusNet Services maintains that there was no negligence on the part of AusNet Services which caused, or contributed to, the Murrindindi bushfire, nor any of the other Black Saturday fires."

State Attorney-General Martin Pakula said he was pleased the class action had been settled.

"The fact that it's been resolved before getting to court means that those families have been able to avoid a much more drawn out process and no doubt one that would have been very emotionally taxing for them," Mr Pakula said.

AusNet said the total losses suffered by those affected by the Murrindindi bushfire had not yet been finalised.

In court, Justice John Dixon described the proposal as a sensible and necessary compromise.

"Perhaps not at the moment but in time, the benefits to the Victorian community - particularly those affected by the fires - of a settlement rather than judgements of this court with winners and losers following long trials will be very clear," he said.