A tram has derailed after a collision with a car in inner Sydney on Sunday.

The car hit the front of the tram as it was heading south on South Dowling Street in Surry Hills, about 4.40pm.

A car has crashed into a tram on South Dowling Street, Surry Hills. Credit:Matt O'Sullivan

The 67-metre tram blocked South Dowling Street, which was closed between Cleveland and Flinders streets as a result of the crash.

However by 7pm one of two lanes in each direction was reopened to traffic, a Traffic Management Centre spokesperson said.