A bushfire burning north-east of Perth has been downgraded from Emergency level.

The blaze in the southern parts of Toodyay, 80 kilometres north-east of Perth, is now at Watch And Act level, but remains a potential threat to lives and homes.

An updated warning has been issued for people between Sandplain Road, Harvester Drive, Toodyay Road and Drummondi Drive, including Wandoo Circle Subdivision.

Residents in these areas who are not prepared to defend their homes are advised to leave now if safe to do so.

According to the Department of Fire and Emergency (DFES), the fire started near the intersection of Toodyay Road and Strahan Road.

It was reported at 4:42pm.

DFES advises: