The family of Melbourne man Julio Ascui, who set off on a hike in Victoria's Grampians five days ago, have shed tears of joy after he was found alive and well in rugged terrain.

The 50-year-old Keilor man said he was feeling "really well", but thirsty, after emerging from the bush at Halls Gap in western Victoria.

Asked what had happened, he said: "I just come to [go] trekking and, after, I'm lost for five days."

"I [was] drinking water from this little river over there, I come every morning to fill up my bottle."

His last contact with his family was via Facebook on December 29.

Julio Ascui's daughter, Jessica Ascui Ordonez, is overjoyed after her father was found safe and well. ( ABC News: Jessica Black )

Emergency services, friends and family had been searching the rugged terrain, using photos Mr Ascui had posted on social media to retrace his steps.

His daughter Jessica Ascui Ordonez had been searching the area yelling her father's name.

"He couldn't hear us, all he could hear was the chopper … he said he went out, he started yelling, but they couldn't see him," she said.

"After today we would have expected the worst, today was the day it was going to happen," her fiancé Andrew Chahine said on Wednesday.

The pair said he was in a cave nearby where they had been looking and they believed their search had "just missed" where he had taken shelter.

Son Joshua Ascui said 25 members of his father's close family had been involved in the search, with a "massive" turn out of friends joining them, and more family on the way from overseas.

Sorry, this video has expired 'I thought I'd lost my father': Julio Ascui's family overwhelmed to discover him alive

"My dad is just the heart of the family and everyone loves him," he said on Wednesday.

"There are no words that can describe how I'm feeling right now, I thought I knew what happiness was, I didn't know what happiness was until today.

"[I'm] just overwhelmed, personally I thought I'd lost my dad … I'm just really happy, really happy."

He said he had feared his father would not be alive for his sister's wedding later this year.

"It's going to be more than a wedding, with my father walking my sister down the aisle, which at this point in time we were thinking my sister's not going to have her father," he said.

"That's going to be remarkable, words can't explain what it will actually mean to my family and my sister."

'We thought we'd hit the jackpot'

Parks Victoria's Dave Handscombe, who spotted Mr Ascui in the rugged terrain, said the bushwalker's fondness for taking "selfies from high points" had helped rangers to find him.

"We got up onto the escarpment, onto a high point to get a better vantage point, and we could see a figure in the distance," he said.

"Initially we thought it was one of the other family members … and then he started yelling out to us waving his hands, and we responded and he said his name was Julio and he'd been out there for five days.

"We thought we'd hit the jackpot, there was lots of emotions at that time because to be honest after five days … you were starting to think the worst."

Parks Victoria ranger Dave Handscombe (left) spotted Mr Ascui in the distance. ( ABC News: James Oaten )

Victoria Police Sergeant Karen Baine said Mr Ascui had become lost after going off track.

"He said he got to the top of the ridge and saw a beautiful spot that he wanted to go and have a look at, and there's no track up there, so he's just wandered off to try to find it, turned around and he was lost," she said.

"He spent the last five days trying to find his way back."

She said while he was found in good spirits, it appeared he had lost 8 kilograms, had very bad scratches on his legs, was dehydrated and "very hungry".

He has since been taken to Stawell Hospital to be assessed for injuries.

Julio Ascui set off on a hike at Halls Gap in the Grampians five days ago. ( Supplied: Jessica Ascui Ordonez )

Mr Ascui's survival was helped by mild weather, access to water and his previous bushwalking experience, Sergeant Baine said.

"His family were saying he's from Chile and he grew up in the mountains, so he did have some background in that kind of terrain," she said.

"You could say it's pot luck, I think it's a little bit of luck that we did find him, I'm just over the moon that we did."

'We had faith every single day'

The dog squad and mounted police had joined the search on Wednesday.

Daughter-in-law Charlene Ascui said the family never lost hope he would be found alive.

"I'm so overwhelmed … we had faith every single day, and he's here, he's right there, he's standing right there," she said.

A police search and rescue map shows where Mr Ascui was found, 1 kilometre from his car. ( ABC News: James Oaten )

"It is a miracle that he's alive and safe and well," another relative at the scene said.

"All of us were [worried about him].

"We have been coming here since the 31st. Now we can go home and celebrate.

"He's fine. He looks fine … he is a bit skinny, but fine."