"It's tragic. You just want to go there and a give them a cuddle," he said.

"It's a pretty tight-knit community. I'm sure everyone will rally around them."

Mr Lockett, who has lived in Neerim Junction all his life, said he believed the girl had two older siblings.

He said he saw the air ambulance arrive, before heading back to Traralgon a couple of hours later.

"That's not a good sign, you expect it to head to Melbourne," Mr Lockett said.

His phone then began ringing and beeping with text messages confirming his worst fears.

"It's nothing you want to happen. You really feel for them," Mr Lockett said.

"Everyone is in shock," another neighbour said, as news of the horrific death spread around the area.

"They're a nice family."

A woman from a nearby farm said she was "devastated".

"I just thought the poor family."

The council's chief executive Alison Leighton confirmed the dog was at the Municipal Animal Pound.

"Firstly and most importantly, council expresses our sincere condolences to the family that have tragically lost their child as a result of a dog attack earlier this morning," she said.

"Our thoughts are with the family and the tight-knit Neerim Junction community during this difficult time."

Ms Leighton said the council was waiting to hear from police on what would happen to the dog.

"Our understanding is that the dog is a pointer breed, which is not a restricted breed under the relevant legislation," she said.

Ms Leighton said the council was organising support agencies to assist the community.

She and mayor Joe Gauci and herself will be at Neerim Junction Community Hall from 11.30am onwards.

Police are investigating and will prepare a report for the coroner.