A former taxi driver has avoided prison after hitting a cyclist in Melbourne's CBD because he didn't see a red light, leaving the rider with spinal injuries from which he has "suffered immensely".

Gurbhej Singh, 29, admitted hitting the cyclist one afternoon in December 2017 while turning from Flinders Street onto Exhibition Street.

Singh had been driving a taxi and was charged six months after the crash.

Security footage from inside the taxi showed Singh was carrying two passengers at the time but wasn't talking or otherwise distracted.

He had been driving under the speed limit and hadn't been using drugs or alcohol.