A cyclist critically injured in a hit-and-run in Melbourne's outer east this week has died in hospital this morning, police say.

It came as police continue to question a 33-year-old man arrested last night over the crash in Ringwood on Tuesday afternoon.

The rider, 45, was hit by a car on Mount Dandenong Road, near Federal Street, just before 2pm.

Police later found the silver Daewoo sedan, believed to have been involved in the smash, burnt out at the rear of a pub overlooking Ringwood Lake off Mount Dandenong Road.

The cyclist, from East Ringwood, suffered life-threatening injuries and was taken to The Alfred hospital in a critical condition.

A Victoria Police spokeswoman said he died in hospital from his injuries this morning.

Officers from the major collision investigation unit arrested the 33-year-old Kilsyth man at 6.40pm yesterday in the Geelong suburb of Belmont.

He is being questioned today. No charges have been laid.