SCHOOLS at risk on "catastrophic Code Red" bushfire-warning days will be told to keep students at home, but it is unclear what action schools should take on days of "extreme" fire danger.

A list of up to 700 Victorian schools considered to be at risk in a bushfire crisis is being finalised by the Department of Education and Early Childhood Development, which will advise of planned school closures ahead of Code Red days.

Speaking at the CFA State Logistics Centre in Knoxfield last week, Premier John Brumby said agreement had been reached with the private school sector about closing on Code Red days.

"On [Code Red] days in identified high-risk areas, all schools and kindergartens and preschool centres in those areas will close, whether they are government or non-government. There is full co-operation of the non-government sector in this regard."

But Mr Brumby said the course of action to be taken by schools on extreme fire-danger days was still being determined.

"We are still discussing with the non-government school sector and the private sector what we do on the days of extreme fire danger, and that is a matter which is under active discussion."

The CFA's Fire Danger Rating system has six tiers, of which Code Red is the most dangerous warning and "extreme" the second-most dangerous.

Upper Ferntree Gully Primary School principal Peta Evans said the school's policy had to reflect that of the Department of Education. "We will be following the Code Red policy. We are guided by the department and emergency services."

She said if the school had a potential danger from a bushfire or any other sources, that information was relayed to the department.