The woman, who was driving alone, managed to escape the sinking car and swim safely to the bank as the car sank to the riverbed.

The car was winched up from the Yarra. Credit:Paul Jeffers

Ambulance Victoria spokesman John Mullen said she suffered arm and abdominal injuries and was treated for lacerations to her head.

The woman was taken to The Alfred hospital where she remains in a stable condition.

Leading Senior Constable Lee Thomson said the exact cause of the crash remains unknown, but the driver has been assisting police with their enquiries from her hospital bed.