A prisoner recaptured after being on the run for nearly 12 hours on Sunday has been too injured to front court on the New South Wales mid-north coast.

Matthew Furner, 28, was arrested after a short police pursuit, which ended when his car struck a roundabout at Frederickton near Kempsey.

Police allege Furner stole a car after escaping from Port Macquarie hospital, before asking four young people at a local restaurant for directions to Grafton.

"Those four youths had the quick mind to contact police and triple-0 and advise them what they've seen," Detective Chief Inspector Guy Flaherty said.

The alleged stolen vehicle was detected by police around 7:15pm on Sunday night.

It was travelling north along the Pacific Highway reaching speeds of 170 kilometres per hour before police called off the chase.

Witnesses reported seeing a man run from a crashed car at a roundabout 50 kilometres north of Port Macquarie and head into bushland.

Witnesses reported seeing a man run from a crashed car and head into bushland. ( Supplied: NSW Police )

Detective Chief Inspector Flaherty said Furner was arrested in a paddock in Frederickton after multiple calls from nearby residents.

"Information came from members of the public that were alerted by the sound of dogs and the unusual movement of cattle that there was a man in the vicinity of their property so they called police."

In Port Macquarie Local Court on Monday, Furner's lawyer said his client was in intensive care at Port Macquarie Base Hospital to undergo surgery for injuries suffered during his arrest.

"He suffered some dog injuries and was also involved in a motor-vehicle accident and suffered internal injuries."

Police dog Mona tracked the escapee to a paddock near Kempsey. ( Supplied: NSW Police )

Furner, who had been remanded in custody for traffic offences, has now been charged with escaping lawful custody.

His lawyer did not apply for bail and it was formally denied.

The case will return to court on September 4.

Corrective Services, meanwhile, has launched an investigation into the incident and a spokeswoman said disciplinary action would be taken if required.

The spokeswoman said any escape was unacceptable, and that the inmate was now under increased security and supervision by specialised staff.