PREMIER John Brumby has indicated police are close to arresting an arsonist wanted for what's been called the "murder" of 21 people in Gippsland.

More than 400,000 hectres have so far been razed in fires across the state, destroying more than 1033 properties, the HeraldSun reports.

Questioned on the progress of inquiries by Taskforce Phoenix, Mr Brumby said: "I believe they are close to finalising investigations."

Mr Brumby had just met Yvonne Hammer who lost her home in the small town of Callignee, 175km east of Melbourne, where at least 11 people died.

Mrs Hammer broke down as she told the Premier: "It's complete murder."

Earlier, Deputy Commissioner Simon Overland confirmed investigators were chasing leads based on the sightings of a young motorcyclist seen acting suspiciously at Churchill on the weekend.

"I understand that particular piece of information has been followed up," he said.

Mr Brumby said he was speechless when he was told of fires being deliberately lit in the Beechworth area overnight.

Mr Brumby said words escaped him when describing those responsible for deliberately lighting fires.

"There seems little doubt that these were deliberately lit," he told reporters at Longwarry today.

"I think words escape us all when it comes to describing that deliberate arson.

"All we can now do, with a police team, in place is to detect those who are responsible, to charge them and to let justice run its course."

Mr Brumby urged anyone who saw suspicious behaviour to notify police immediately.

Police are investigating reports of two arsonists lighting fires near the township of Stanley in Victoria's north, not far from the Beechworth firefront.

Victoria Police Chief Commissioner Christine Nixon today confirmed the probe into reports of two small deliberately-lit fires late yesterday which were quickly extinguished.

"We did have some information and we are investigating that,'' Ms Nixon said.

"It was in the north of the state.''

It is believed police have a description of a car used by the alleged arsonists.

Earlier today Ms Nixon, who will head a new body to direct the rebuilding process across the state, said some bushfire victims were so badly burned they may never be identified. 

Ms Nixon, the Coroner's office had made provisions for 300 people, the HeraldSun reported.

Read more on the HeraldSun online.