A man charged with murder has refused to appear in court after allegedly being involved in a fatal burning assault on Tuesday.

Stuart Lee, 63, was the subject of a filing hearing before Magistrate Hugh Radford in the Ballarat Magistrates' Court on Wednesday, the first appearance since an incident at Wheatsheaf where the 69-year-old man was killed.

Lee faced four charges, including murder, arson and intentionally causing injury.

Defence lawyer Andrew Mitre said his client did not wish to attend court and had remained in the cells as the court heard a murder charge had been added to earlier charges.

The court heard a Mental Health Advice and Response Service report of Lee had identified some mental health issues, the details of which were not made public.

Mr Mitre also told the court Lee had physical custody management issues, including a history of epilepsy and a heart condition requiring a pacemaker.

There was no application for bail and Lee remained in custody to be remanded for a committal mention on June 1.

Wednesday 9.45am:

Police have confirmed a 69-year-old man flown to the Alfred Hospital with serious burns after an altercation at Wheatsheaf has now died.

Officers said he passed away late on Tuesday night.

"It's alleged there was an altercation which resulted in which the victim being set alight," a police spokesperson said.

A 63-year-old Wheatsheaf man was arrested at the scene and interviewed by police.

He has been charged by Arson and Explosives Squad detectives with attempted murder, however it is expected this charge will be upgraded to murder this morning following the overnight death of the 69-year-old man.

The 63-year-old man will face Ballarat Magistrates' Court this morning.

UPDATE: 2.45pm

The Arson Squad has been called to a property at Wheatsheaf, north east of Daylesford where a man was treated and later flown to the Alfred in a serious condition with significant burns.

Detectives from Moorabool Criminal Investigation Unit have confirmed a 63-year-old Wheatsheaf man has been remanded in custody to appear in Ballarat Magistrates Court on Wednesday.

The alarm was raised at 10.28am Tuesday when the CFA received calls about an explosion in Wallaby Road. Daylesford CFA was sent out.

Police said it followed an alleged altercation nearby.

Ambulance Victoria flew a man in his 60s to the Alfred with serious upper body injuries, with the helicopter landing on an oval several kilometres away.

Several other ambulance vehicles also attended the scene.

Police turned up from Daylesford, Ballarat, Creswick and Bacchus Marsh.

Officers were unable to confirm the exact address of the incident, but were seen with surgical gloves and other forensic gear at two adjoining addresses in Wallaby Road.

The area is densely forested, close to the Wombat State Forest - and conditions are dry.

A bobcat and mounds of recently moved timber were visible outside one of the homes.

The other had multiple signs on the gate warning trespassers to keep out.

Wallaby Road was closed for much of the early afternoon, with residents saying they were keen to get in to check if their animals and properties were safe.

EARLIER:

A man has been flown to the Alfred Hospital with life-threatening injuries after he was allegedly assaulted at a property near Daylesford on Tuesday morning.

The incident was initially reported as an explosion about 10.25am on Tuesday in Wallaby Road, Wheatsheaf.

Ambulance Victoria confirmed a man, believed to be in his 60s, was being treated for "serious upper body injuries".

A Victoria Police spokesperson said Moorabool Crime Investigation Unit are investigating the incident.

"It is alleged a man was assaulted following an altercation on Wallaby Road about 10.25am," the spokesperson said.

"He was airlifted to hospital with life-threatening injuries.

"A Wheatsheaf man was arrested at the scene and is assisting police with their enquiries. Police are working to establish the exact circumstances of the incident and the investigation is ongoing."

Detectives from the Moorabool CIU later confirmed to The Courier the man from Wheatsheaf has since been charged and remanded in custody to appear in the Ballarat Magistrates' Court on Wednesday.

The incident is in a forested subdivision, close to the Wombat State Forest.

Police are speaking to neighbours as the investigation continues.

Both ends of Wallaby Road have been closed by Police.

Anyone with information on the alleged assault is urged to contact Crime Stoppers on 1800 333 000.

A confidential report can also be made online at crimestoppersvic.com.au

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