A woman has died and another is seriously injured after an alleged hit-run collision in Newcastle.

NSW Police have declared a critical incident investigation as they search for a driver following the crash in North Lambton just after 2.40am.

Police officers reportedly observed a Holden sedan driving recklessly on Newcastle Road. Due to safety concerns, they chose not to chase the vehicle. Unfortunately, a collision involving the same Holden occurred on the same road shortly after the police saw it.

The Holden sedan collided with a Hyundai sedan further along Newcastle Road.

The passenger of the Hyundai, a woman believed to be in aged her 50s, died at the scene.

She is yet to be formally identified.

The driver, a 28-year-old woman, was taken to John Hunter Hospital in a serious condition.

Police later revealed the 28-year-old woman as 25 weeks pregnant and has subsequently lost her unborn child.

The driver of the Holden allegedly fled the scene before police arrived.

Following the accident, paramedics attended to two backseat passengers in the Holden. These passengers were two girls aged 15 and 17. They received medical treatment at the scene before being transported to John Hunter Hospital. Police accompanied them during their hospital transfer.

Authorities set up a crime scene at the location of the collision. A critical incident team from Hunter Valley Police District will be responsible for conducting an investigation into the circumstances that led to the incident.

The investigation will be reviewed by the Professional Standards Command and oversighted by the Law Enforcement Conduct Commission (LECC).

Anyone with information, CCTV and or dashcam footage about this incident is urged to contact Crime Stoppers: 1800 333 000 or Information is managed on a confidential basis.
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