Video shows an out-of-control bushfire raging on Melbourne’s southeast outskirts where at least one home has been engulfed by the flames.

Firefighters are battling the blaze in Carrum Downs that has claimed rear sheds, fences and trees along with one dwelling.

Thirty fire crews along with helicopter water bombers are trying to tackle the fire that broke out about 2.40pm on Blue Wren Rise, the Herald Sun reports.

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Trees and rear sheds have gone up in the out-of-control blaze. Source: 7 News

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At least one home had gone up in flames. Source: 7 News

A Watch and Act warning is place for Carrum Downs residents, along with the suburbs of Frankston North, Sky and Langwarrin.

Victorians elsewhere are being urged to stay indoors and avoid the "blast furnace" of what is forecast to be Melbourne's hottest day in nearly two years.

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There is a Watch and Act warning in place for Carrum Downs and surrounding suburbs. Source: 7 News

Victoria Ambulance warns the "killer" heat would be "like a blast furnace".

"You need to take this seriously. You need to take care. So put off the sporting events, put off the outside events, stay inside," Ambulance Victoria's state health commander Paul Holman told reporters on Friday.