Victorian health authorities have told Morwell residents affected by the Hazelwood coal mine fire that it is safe to return home.

The chief health officer, Dr Rosemary Lester, said the decision was made because the air quality has continued to improve in the week since the fire was brought under control.

"Those groups can now plan to return to living and working in the southern area of Morwell," she said.

The fire at the mine has been burning since February 9 and has left the town of Morwell shrouded in a haze of smoke and ash ever since.

At risk residents in Morwell South, including people over 65, pregnant women and those with a pre-existing lung condition were advised to relocate on February 28, because health concerns.

The town's air quality today has been rated as very good by the Environment Protection Authority but Dr Lester says it may still fluctuate.

Morwell assistance 9,000 calls to DHS hotline

9,000 calls to DHS hotline 4,000 respite assistance payments made

4,000 respite assistance payments made over 1,000 weekly relocation payments made

over 1,000 weekly relocation payments made Close to $3 million assistance directly to people for respite and relocation.

"As work continues in the coal mine there may well be further brief periods of smoke but we certainly don't expect them to be anywhere near the sorts of levels that have been experienced earlier in the event," she said.

"However there may be brief periods and we will issue health advice if that's needed."

Fire Services Commissioner Craig Lapsley says they had been hoping for more rain over the weekend to help put out the remaining hotspots.

"The rain we got has been helpful but it hasn't done what we would've liked it to do, he said.

"We've rostered firefighters from Victoria and interstate for 24 hour shifts through to Friday of this week to continue to work around the clock to put out those hotspots."

Commissioner Lapsley says residents should now return home and start cleaning up.

"Assess your property and government and the city will provide information later this week about clean-up options," he said.

The Environment Protection Agency (EPA) will continue to monitor the air quality in the Latrobe Valley for the next 12 months.

New equipment to measure fine particles in the air will be installed in the nearby towns of Moe and Churchill.

"Our aim is to keep monitoring air in the valley until we've restored the residents' confidence in the air they're breathing," said EPA boss John Merritt.

School principals will also be able to move children back into their normal schools once they have been appropriately cleaned.