Victoria Police has released a photo of a man they wish to speak to after a cyclist was hit by a stolen car and killed in Melbourne's inner suburbs.

Key point: A 27-year-old Dutch woman was hit by a white Mercedes sedan

A 27-year-old Dutch woman was hit by a white Mercedes sedan She died at the scene and the driver fled on foot

She died at the scene and the driver fled on foot Police deliver message to driver: "We will not stop, we will arrest you"

Police said the 27-year-old Dutch woman was cycling when she was hit by a white Mercedes sedan after it clipped another vehicle on Chapel Street, near Grosvenor Street in South Yarra, at about 10:00am Sunday.

"We've lost a life of a young girl who was just going about a Sunday morning bicycle ride," Detective Inspector Stuart McGregor said.

"She was in the bike lane and … the driver of the white Mercedes decided that he's going to cut through on the left-hand side of the other vehicles and at the same time he's collided with her and pushed her up against another car."

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

Two parked cars were also hit by the Mercedes, but no-one was inside.

The driver of the Mercedes fled the scene on foot, police said.

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

He was last seen running on Simmons Street away from Chapel Street.

Detective Inspector McGregor said bystanders went to the aid of the woman and the driver and were "stunned" when he ran from the scene.

"His first thought was to run. It wasn't to help, it wasn't to stop. It wasn't to think about the poor person he's hit," he said.

"He's then taken off from the scene and left without a thought for anyone else."

He had this message for the driver: "We will not stop, we will arrest you."

Police said the white Mercedes was stolen last week. ( ABC News )

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

The driver has been described as aged in his late 20s or early 30s with dark hair and facial hair.

He was wearing dark clothing, including tracksuit pants with a large white Adidas logo down the side, police said.

Police said they were not aware of anyone else who had been injured.

The cyclist is yet to be formally identified.

Anyone who witnessed the crash or has information on the driver has been urged to contact Crime Stoppers.