The collision occurred at the intersection of Riverview Dve and the Goulburn Valley Hwy at about 7.30pm.
Southbound traffic along Goulburn Valley Hwy was turned back by police for at least 30 minutes following the incident.
Police said the alleged offending driver left his vehicle and proceeded to flee the scene on foot.
The alleged offender made it as far as Kennedy and Sheehan Rds before he was apprehended, police said.
Police said the alleged offender’s vehicle was travelling eastbound along Riverview Dve when it failed to stop at a red light.
The Holden Commodore then allegedly drove on to the Goulburn Valley Hwy before it crossed the median strip and collided with the front right corner of a red Toyota Yaris, police said.
No fatalities or injuries were reported.
The alleged offending driver was arrested by police and taken to Shepparton Police Station to await further questioning.
The alleged offender faces charges of drug possession, no licence to drive, failing to assist, fleeing the scene and causing a collision.
Alcohol was not a factor in the collision, police said.
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