Acting Sergeant Forbes Klemm said the collision occurred at Big Hill.

"We believe the driver lost control of the car, collided with a road sign, missed several trees and has landed in an embankment," he said. 

"The fuel tank was ruptured and the car has caught alight.

"The driver was lucky to escape the blaze.

"The driver has left the scene of the collision.

"The driver has also fled the scene of the fire on Calder Highway. 

"We take that very seriously because the fire could have spread quickly.

"The driver is known to police."

Acting Sergeant Klemm said the orange Holden Commodore was stolen on Wednesday night from a Long Gully property. 

"The male offender has made contact with the owner of the car after the collision occurred so we know he is still at large," he said. 

"We suspect he has some injuries due to the collision.

"We don't believe the man is a danger to the public."

Police are asking anyone who saw the orange Holden Commodore driving erratically in Marong or Kangaroo Flat to contact Bendigo Police Station on 5448 1300. 

"If anyone witnessed the collision we urge them to contact us," Acting Sergeant Klemm said. 

The Calder Highway is now reopened. 

EARLIER: WEDNESDAY 10.50pm: A Bendigo police spokesperson has confirmed a single car crashed into a tree on High Street.

"A car went into a tree and it caused a fire.

"At this stage we do not believe anyone is trapped in the car.

"The roads are all blocked off while we contain it."

WEDNESDAY 10.40pm: THE Calder Highway has been closed in both directions following a car accident at Kangaroo Flat.

A CFA spokesperson confirmed there had been an accident on High Street and said there was a possible person trapped at the scene.

"There has been a car accident with a possible person trapped," she said.

"The call came in at 10.14pm.

"The Calder Highway is closed in both directions.

"The CFA, police, ambulance and SES are all on scene."