Despite pleas from residents to fix the corner - and a recent incident in which a school bus nearly collided with a car at the site - VicRoads will only commit to listing the site "for consideration under a future Greyspot program".

Two months ago bus driver Sue Waters was doing a school run when she was involved in a near miss with a car.

"It's a deadly road and somebody's going to get killed," Ms Waters said.

"It's going to cost a lot to change it but it's going to cost a lot more to rehabilitate an accident victim."

VicRoads acting regional director Western Victoria Bryan Sherritt said VicRoads met with community members in May this year to discuss the safety of the Daylesford-Newstead Rd intersection.

"In June, we completed line marking to improve delineation at this intersection. We have also listed the site for consideration under a future Greyspot program," he said.

"VicRoads crash data shows there have been no reported crashes at this intersection in the last 20 years. "

But Franklinford resident Morrie Klavins, whose home overlooks the intersection, has witnessed some very close calls.

"There have been tyre markings on the road where people have had to stop," he said.

"A couple of times I've seen people turning left forced onto the grass.

"It's not a good situation.

"VicRoads have said nobody has been posted as killed.

"From what we can see, that's only been luck.

"There's no guarantee when luck will run out."

Holcombe Ward councillor Bill McClenaghan, who has joined members of the community action group, the Jim Crow Planning Group, in a campaign to have the intersection fixed, said installing a roundabout at the site would be the logical solution.

Cr McClenaghan said it was a miracle no one has been killed at the site yet.

"It's blind, there's a hill, there's a main arterial road and you've got B doubles," he said.