The 36-year-old mother of three collapsed and died in her Clunes home on Tuesday morning.

Ms Stamatov had been announced as the new Cameron ward councillor on Saturday and was said to be "delighted" by her appointment.

Hepburn Shire Council's chief executive officer, Victor Szwed, said a by-election would be held to appoint a new councillor.

Mr Szwed said the council had received advice from the Office of Local Government and expected to hold a by-election through postal voting.

The dates of the by-election have not been finalised, but a new councillor is expected to be announced in March.

Ms Stamatov was expected to take her Oath of Office tomorrow at the council's statutory meeting to elect a new mayor.

Creswick police attended Ms Stamatov's home following her death, but said it had not been deemed suspicious.

Yesterday Ripon MLA Joe Helper extended his sympathy to Ms Stamatov's husband Chris and three children Liam, Chloe and Kayla.

"It is particularly sad that Bernadette has passed away before having the opportunity to represent the Clunes community as a councillor for Hepburn Shire Council," Mr Helper said.

"Our thoughts are with her family at this difficult time."

Details of Ms Stamatov's funeral had not been finalised yesterday.