The car that crashed was removed from the scene late on Monday afternoon.

Two children have died in a crash near Palmerston North after a stolen vehicle pursued by police hit a power pole.

One girl, 12, died at the scene and the 15-year-old male driver died in Palmerston North Hospital.

A second young woman, 15, in the car was sitting in the back seat. She sustained serious injuries.

The driver, who police said was on bail for several previous serious driving offences earlier this year, failed to stop for police on Monrad St, in Palmerston North's western suburbs, at 1.30pm on Monday, Central District commander Superintendent Sue Schwalger​ said.

The car, which police said was stolen, was driven on to Pioneer Highway-State Highway 56, before crashing into a power pole at the intersection with Shirriffs Rd, near Longburn, a small settlement to the southwest of the city.

"The front-seat passenger of the vehicle died at the scene," Schwalger said.

DAVID UNWIN/STUFF Central District commander Superintendent Sue Schwalger says fleeing drivers need to take more responsibility, following a crash in Palmerston North that left two young people dead.

The pursuit lasted 90 seconds, she said, but it is not known what speed the car was travelling at.

Schwalger said at the time of the pursuit the traffic was light, there was light drizzle and the road was dry.

"When the officer first arrived he could see the rear-seat passenger was trying to exit the vehicle."

A woman who works at Awapuni Nurseries said the car ended up in a ditch on the other side of the road from the pole, she said. "We heard a loud bang in the office and then the power flashed. Then it was all just sirens, instantly."

MURRAY WILSON/STUFF Police say the 15-year-old driver of the car that crashed was sent to Palmerston North Hospital with critical injuries. He died in hospital.

O'Leary Engineering owner Dean Sandbrook heard the noise of screeching tyres from his office, before seeing a "flash of blue" as he turned his head.

"I heard the tyres let go. I was on the phone at the time. It was going that bloody quick."

Witness Marc Bailey reported the police chase beginning near Palmerston North's border, with the blue Subaru heading south.

MURRAY WILSON/STUFF Emergency services were seen rushing towards the scene, which was blocked off on Monday afternoon.

He said he saw the beginning of the chase and then came across the crash a few seconds after it happened.

"It was deep in the drain when I got there. I was stopping traffic as there was a power line across the road at head height. One of the cop cars didn't stop and lost its lights on the wire."

Police cars and fire engines rushed to the scene after 1pm on Monday, speeding through Palmerston North.

SH56-Pioneer Highway, leading towards Longburn, was blocked off at the corner of Longburn Rongotea Rd. Traffic was being directed to the northeast off SH56 on to Longburn Rongotea Rd.

MURRAY WILSON/STUFF A 12-year-old girl and 15-year-old boy have died after a car the boy was driving crashed near Palmerston North.

From the police cordon, the lights of emergency services were visible, close to Walkers Rd, as were sagging power lines in the distance, along the highway.

Schwalger said a serious crash unit investigation and an internal investigation would begin. The Independent Police Conduct Authority will also be notified.

The pursuit involved a single patrol car, police confirmed.

The officer involved is receiving support, Schwalger said. He stopped the car based on "possible information" relayed by communications staff, but had not identified the driver before he fled.

​Schwalger said fleeing drivers needed to take more responsibility.

"Police don't want anyone to needlessly die or get injured on our roads.

"The message is simple: If you're signalled to stop, please stop. Allow us to do our job and then everyone can go home safe."

Powerco spokesman Peter Bingham said eight customers lost power in the area.