Daylesford Primary School has also beefed up its security measures after a five-year-old girl and a seven-year-old boy were both approached by a man in the Vincent Street school grounds last Thursday.

Ballarat Sexual Offence and Child Abuse Investigative Team Detective Acting Sergeant Adam Tink said today a number of inquiries were being followed, including speaking with witnesses and looking at CCTV footage from local shops.

However, Acting Sergeant Tink said they had yet to receive any new information after a FACE image of the man was released this morning.

"We encourage anyone in Daylesford who may have seen the man to come forward," he said.

A seven-year-old boy was exiting a toilet block when he was approached by the man who grabbed him on the arm and attempted to lure him away. 

The little boy broke free and ran away to raise the alarm. 

Investigators have been told the same man also approached a five-year-old girl in the school grounds around 2pm, attempting to convince her to leave with him. 

She told a family member of the incident later that night and the school and police were notified the next morning.

Detective Acting Sergeant Tink said both children were unharmed and were coping well.

However, he said it was very concerning the man had entered school property.

"But we're very comfortable the school has taken appropriate action.

"The parents have been well informed of the circumstances."

He said the man is believed to have entered via the school's front entrance.

"We've spoken to the school, the staff and the students. Our investigation is ongoing and we're following a number of inquiries."

He said the school had changed several of its policies, including children now having to go to the toilet in pairs.

He said no known paedophiles were currently living in the Daylesford area but stressed parents needed to talk about stranger danger with their children.

"It is concerning the age of the students targeted in the school. There is no indication of where he came from or where he went."

He said rumours of a similar incident at another Daylesford school a few weeks earlier were unfounded.

The man was perceived to be Caucasian in appearance and aged in his late 40s with a medium build with black hair. 

He was wearing ripped jeans, a blue t-shirt and a red or brown coloured hat. 

Anyone with any information about the incidents or the man’s identity is urged to contact Crime Stoppers on 1800 333 000 or visit www.crimestoppers.com.au