A horrific crash in Melbourne's bayside has claimed the life of one man and left another in hospital.

A green sedan smashed into a stationary tram near the corner of Danks Street and Victoria Avenue in Albert Park about 9am.

The male driver of the vehicle died at the scene, a police spokeswoman said.

The tram driver was taken to The Alfred hospital with minor injuries and suffering shock. There were no passengers on board when the crash happened.