Police have arrested a 26-year-old man over a hit-and-run which killed a Dutch cyclist in Melbourne's inner-south on the weekend.

Key points: The Dutch woman, 27, was cycling on Chapel St in South Yarra on Sunday morning when she was hit by the car

The Dutch woman, 27, was cycling on Chapel St in South Yarra on Sunday morning when she was hit by the car The driver fled the scene on foot

The driver fled the scene on foot Police said the car involved was stolen during an aggravated burglary in Elsternwick on August 5

The man, who has no fixed address, was arrested in Bourke Street in the CBD at about 5:30pm after a member of the public recognised him from images released on Sunday, police said.

The man is currently being interviewed.

No charges have been laid.

The 27-year-old Dutch woman was cycling along a bike lane on Chapel Street near Grosvenor Street in South Yarra when she was hit by an allegedly stolen white Mercedes and pinned against another car at about 10:00am on Sunday.

The driver also hit a moving car and several parked vehicles.

Police said when bystanders went to assist those involved in the collision, the driver of the Mercedes ran away.

The cyclist was treated by emergency services but died at the scene.

No-one else was injured in the crash.

Police said the driver had driven into the bike lane to get around other cars. ( ABC News )

The man's arrest came about three hours after Detective Inspector Stuart McGregor of the Major Collision Investigation Unit appealed for public help to locate suspects and called on the man to give himself up.

"The message is clear, we're going to find you, it's just a matter of time before we're there knocking on the door and arresting you," Inspector McGregor said.

"What you want to do is have a nice story to tell the courts, that you gave yourself up before the police had to find you."

Inspector McGregor asked the media to respect the privacy of the dead woman's family, who were making their way out to Australia.

Police earlier said they believed the Mercedes involved was stolen during an aggravated burglary in Elsternwick on August 5.

Anyone with information about the incident is urged to contact Crime Stoppers on 1800 333 000.