A Melbourne bus driver has been stood down after his refusal to allow a blind woman's guide dog onto his vehicle triggered a "very distressing", hour-long standoff in the city's north-east.

Louise Pearson was boarding the 501 bus at Finlayson Street in Rosanna with her guide dog in its harness about 7.50am on Tuesday when the driver refused her entry.

Louise Pearson and her guide dog were denied entry to a bus in Rosanna on Tuesday morning. Credit:Yasmin Paton, Ten News

"The bus driver pulled up in front of me and he said 'no dogs on this bus'," Ms Pearson told 3AW radio. "I have a golden Labrador guide dog called Arthur and I stepped onto the bus and said 'this is a guide dog'."

After the driver continued to deny her entry, Ms Pearson, who takes the same bus every day for work, called police.