CFA operations officer Bernie Fradd said the Daylesford Fire Brigade would make an official announcement about the funding soon.

"We're pleased there's an extra tanker coming to the area," he said.

"Funding is expected to be announced very soon and an ultra-light tanker is going to be announced."

It is understood the funding will come from Bendigo Bank, in collaboration with the State Government's Rebuilding Together Plan, announced by Premier John Brumby and Prime Minister Kevin Rudd recently.

A spokesperson for the Victorian Bushfire Reconstruction and Recovery Authority said funding for the tanker was one of the priorities put forward in the Hepburn Community Recovery Plan, which formed part of the Rebuilding Together Plan.

"Victorian Bushfire Reconstruction and Recovery Authority was to match the community priorities to funding sources, including federal and state funding, grants from the Victorian Bushfire Appeal Fund or from corporate or philanthropic donors," the spokesperson said.

"In this case the Bendigo Bank - Community Enterprise Foundation indicated they will fund $80,000."

Mayor Bill McClenaghan said the news was "absolutely terrific", especially as Daylesford and Hepburn Springs had been declared fire-prone towns.

"It will give the CFA more flexibility as it doesn't need a full crew to supply this vehicle. It will increase community safety," he said.

Daylesford has been trying to secure the tanker for months.

It was hoped $80,000 received this year under the Bushfire Memorial and Commemoration Events Funding grant could be used to fund the tanker as a mobile memorial.

The idea hit a dead end when it was found to fall outside the memorial funding guidelines.

The council is considering how best to allocate the $80,000 memorial grant.

Liberal MP John Vogels said the money could be used to rebuild the Daylesford Spa Country Railway.

"Last summer's Musk fires damaged a large section of the Spa Country Railway track which is an important tourist attraction for the region," Mr Vogels said.

"Investing the memorial funding into rebuilding the tourist railway would be a fitting way to establish something for future generations to remember the contribution of our brave CFA personnel while at the same time restoring the damage done."