The fire has been contained.

Victoria Police are on scene slowing all traffic on Benalla-Tocumwal road due to smoke over road and trees burning on the side of the roads.

Motorists please be aware of traffic delays in this area and of emergency vehicles working on road edges and drive appropriately.

Update midday Sunday:

The CFA has advised there is currently no threat to residents in Boxwood, Devenish, Yundool and St James, but they should remain prepared if the situation changes.

The grassfire is travelling in a south-westerly direction towards Tungamah Boundary Road.

Earlier:

There is a fast-moving grassfire burning at Yundool, heading towards Benalla.

Twelve CFA vehicles are currently working on the blaze, which began in an paddock on Oliver Road about 11am.

It has now spread across Benalla-Tocumwal Road and is not yet under control.

Vic Emergency is yet to issue formal advice to residents.

More to come.