Emergency services were called to shrub land off Cape Nelson Road in Portland after reports of a grass fire about 8pm yesterday.
Firefighters arrived at the scene to find a vehicle engulfed in flames.
A person, who is yet to be formally identified, was found dead inside.
“A crime scene has been set up and the circumstances surrounding the fire are yet to be determined,” a Victoria Police spokesperson said.
Police are investigating the fatal fire, with an arson chemist and fire investigators from the Arson Squad attending the site this morning to analyse the scene.
Anyone with information is urged to call Crime Stoppers on 1800 333 000.