The public health warning was triggered when an old mill, which many apparently believe belonged to village vampire Sava Savanovic, collapsed due to a lack of care.
The notorious vampire is said to have lived in the old watermill, where he drank the blood of anyone who came to collect grain.
The mayor of the village of Zarozje, Miodrag Vujetic, said he is unfazed about being mocked by others who do not share a belief in the legend, placing the safety of his citizens first.
"People are worried, everybody knows the legend of this vampire and the thought that he is now homeless and looking for somewhere else and possibly other victims is terrifying people. We are all frightened," he said.
Residents have also been advised to place holy crosses in every room of their houses as a further precaution.
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