About 9,000 disappointed festival-goers have packed up their tents and left the Falls Festival after the annual music event near Lorne on the Great Ocean Road was cancelled due to predicted extreme weather conditions.

Key points: Thousands of fans have been asked not to return to Lorne or other coastal towns as they will be subject to the same fire conditions

Thousands of fans have been asked not to return to Lorne or other coastal towns as they will be subject to the same fire conditions The festival has been cancelled because of "potential fires, smoke, severe winds and tree hazards".

The festival has been cancelled because of "potential fires, smoke, severe winds and tree hazards". For the latest emergency information, visit the Vic Emergency website

Some people who drove across state lines to attend the festival said they were frustrated the call to cancel was not made earlier.

In a statement announcing the decision yesterday morning, organisers said conditions forecast for the Otways and the surrounding region on Monday created "a risk to health and safety due to potential fires, smoke, severe winds and tree hazards".

"We are gutted to make this call but the safety of our patrons, artists and staff is our main priority," said Jessica Ducrou, the co-chief executive of festival organisers Secret Sounds.

Punters will receive full refunds on tickets, including booking and payment-processing fees from this morning.

But some are already hundreds of dollars out of pocket.

Organisers said they had made the decision "with a heavy heart". ( Facebook: Falls Music and Arts Festival )

Lucy Adams drove more than eight hours from Adelaide for the festival and said she had already spent hundreds on food and accommodation.

"We paid for accommodation in Ballarat the night before, we probably spent like $150 on fuel, we bought $200 worth of food, a gazebo and stuff like that, tables," Ms Adams said.

"Probably like two or three hundred dollars each already."

'We're very shattered'

Josh Young also made the trip from Adelaide and initially said he would not leave.

"But then [I] realised how hard it was to get out [of the festival] and if fire went through I was thinking not many would be okay," he said.

"We do get a full refund on the ticket, but I'd say I'm personally $1,000 out of pocket."

Mr Young said he and his friends had no choice but to head back to Adelaide, as they had not made other plans.

"We're very shattered, basically nothing will compare now to what I do instead."

Mia travelled from Melbourne and said it would have been easier if the festival was cancelled before she made the trip.

But she said she understood it was for everyone's safety.

"We have no backup plan, it's also my birthday tomorrow but we'll work something out," she said.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 40 seconds 40 s Festival-goer Mia said she had no backup plans for New Year's Eve or her birthday after Falls Festival was cancelled.

Stars lock in last-minute Melbourne gigs instead

Seven artists from the Lorne line-up arranged last-minute gigs in Melbourne for Sunday and Monday night to alleviate the disappointment of their fans.

Halsey, Yungblud, Holy Holy, Rat!Hammock, and Peking Duk played on Sunday night. Waax will play on Monday at Stay Gold in Brunswick, and Lime Cordiale will play on New Year's Eve at the Croxton in Thornbury.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 49 seconds 49 s Singer Halsey spoke out after the cancellation and told fans she was "devastated" she would not be able to play for them.

American singer Halsey said she would give priority tickets to festival-goers to attend her last-minute show in Melbourne.

She posted on Instagram that she would play a "a good old-fashioned dirty show" at The Forum.

"LORNE falls ticket holders get PRIORITY access to the box office tonight, but anyone can come. all profits are going to fire relief," the Instagram post said.

Halsey fans still got to see the singer perform to a packed room at Melbourne's Forum Theatre. ( ABC News )

The Bureau of Meteorology is forecasting a top of 40 degrees Celsius today for Lorne, and the fire danger for much of the state, including the area containing the festival site, is rated as extreme.

"After consultation with local and regional fire authorities and other emergency stakeholders, it is clear that we have no other option," the organisers' statement said.

"While conditions are fine at time of writing, we are taking the opportunity to move everyone offsite safely and in good time."

This year's festival lineup included Halsey, Vampire Weekend and Psychedelic Porn Crumpets. ( Facebook: Falls Music and Arts Festival / Ian Laidlaw )

Great Ocean Road 'at capacity' ahead of extreme fire day

"There is no need to rush, please ensure you have a sober driver," organisers said in a statement.

"The Great Ocean Road is at capacity, please do not return into Lorne or other coastal townships as they are all subject to the same extreme weather conditions.

"Do not look to camp in the Otways or any forested area, as the fire risk is extreme and there are forecast wind gusts of 90–100kph with possible lightning."

The cancellation came as firefighters battled several bushfires across the state.

Melbourne band Press Club performed at the Lorne event on Saturday night. ( Facebook: Falls Music and Arts Festival / Ian Laidlaw )

The Falls Festival was scheduled to run until New Year's Day.

It is the second time it has been disrupted by bushfire risk.

In 2015, it was relocated to the Mount Duneed Estate winery near Geelong because of a blaze burning near the Lorne site.

Falls events at Byron Bay, Fremantle and Marion Bay, Tasmania are unaffected.