Three people have been taken to hospital after a tram collided with a van carrying teenagers from a special-needs school in Melbourne, pushing it back about 100 metres.

Key points: Driver and two students taken to hospital in stable condition

Driver and two students taken to hospital in stable condition Van was attempting hook turn in Melbourne's CBD

Van was attempting hook turn in Melbourne's CBD Tram pushed the van, which hit a parked car and collided with a pillar

Police said the van was hit by the tram while attempting a hook turn at the intersection of Collins Street and King Street.

The van was pushed by the tram, hitting a parked car and colliding with a pillar of a building in Collins Street.

Sergeant Brendan Hooper-Duffy said four students, aged between 15 and 17, were on the bus along with four of their carers.

The group from Victoria's Bass Coast was on a school camp in Melbourne.

"The ambulance service were very quick on the scene and attended to the injured. Minor injuries only for the passengers and the driver at this stage but obviously everyone is in shock," Sergeant Hooper-Duffy said.

Two teenagers and a woman in her 20s were taken to hospital after the collision. ( ABC News )

Ambulance Victoria said the female driver, aged in her 20s, and two teenage girls were taken to the Royal Melbourne Hospital in a stable condition.

The driver was initially trapped in the van and had head, neck and chest injuries.

One of the girls injured an arm, while the other had facial injuries.

A man in his 60s from the tram was also assessed by paramedics at the scene.

Bass Coast Specialist School principal Edith Gray said the group had been returning from the movies.

"It was just a really unfortunate accident," she said.

"We've been in contact and offered them some counselling and they have decided that between the students and the staff that it would be great for the camp to continue, so that's what they're going to do."