UPDATE: A BUSHFIRE threatening the outer Melbourne suburb of Pakenham has been contained, the CFA says.

An emergency warning was issued for Pakenhamthis afternoon, as fire crews battled three blazes - a bushfire, a grassfire and a car or gas bottle fire - near the suburb.

But a short time later the CFA said the bushfire was contained and the threat was downgraded to an advice message.

Residents were warned of heavy smoke in the area.