Police believe the accident occurred about 3am but the wreckage wasn't discovered until 7am by a passing cyclist.

Senior Constable Craig Grenfell of Smythesdale Police said the man was driving his grey 1976 Holden ute east along the Smythesdale-Ross Creek Rd towards Ross Creek, about two kilometres from Smythesdale, when he lost control in the gravel while negotiating a bend.

The vehicle skidded along the road for about 100 metres and ploughed through a small tree and several bushes before flipping over.

It is believed the man, who was the only occupant of the ute, died instantly from severe head injuries.

A Ballarat CFA rescue unit and Smythesdale CFA were called to the scene to secure a full LPG tank which was on the back of the ute.

The road was blocked off for a couple of hours while the controlled flare-off took place as a precautionary measure.

The vehicle was badly crushed by the impact, with personal items from the ute, including clothing, thrown several metres from the site.

Sen Const Grenfell said a neighbour reported hearing a loud bang about 3am, which police now believe was probably when the accident occurred.

Police said the man had spent the evening at a friend's house prior to the accident. He was married and previously lived in Maryborough.