A tragic incident in Newcastle, NSW, has resulted in the death of a woman and serious injuries to another individual after an alleged hit-and-run collision.

The NSW Police have initiated a critical incident investigation following the crash in North Lambton that took place just after 2:40 am.

Law enforcement officers reportedly observed a Holden sedan driving recklessly on Newcastle Road and chose not to pursue it due to safety concerns. Unfortunately, a collision involving the same vehicle occurred shortly thereafter on the same road.

Tragically, the Holden sedan collided with a Hyundai sedan further down Newcastle Road, leading to the death of a female passenger in the Hyundai, believed to be in her 50s. The victim has not been officially identified yet.

The driver of the Hyundai, a 28-year-old woman, sustained serious injuries and was transported to John Hunter Hospital for treatment.

The driver of the Holden reportedly fled the scene before authorities arrived. Two teenage girls, aged 15 and 17, who were passengers in the Holden, received medical attention from paramedics and were later taken to John Hunter Hospital under police supervision.

Following the incident, a crime scene was established, and a critical incident team from Hunter Valley Police District will be investigating the circumstances surrounding the tragic event. The investigation will undergo review by the Professional Standards Command and will be overseen by the Law Enforcement Conduct Commission (LECC).