Police were told the car was travelling south on Coach Road before it veered across the road and crashed into a tree and caught fire at 5.30pm on Saturday.

The man, a 21-year-old from Faraday near Castlemaine, was air-lifted from the scene along with an 18-year-old Terang man.

Both men had life-threatening injuries. The Faraday man later passed away.

More news

The vehicle also contained a 20-year-old from Colac who was taken to a local hospital with non-life-threatening injuries

Victoria Police tried to intercept the vehicle shortly before the crash after it was detected travelling at speeds in excess of 150km/h.

As police members tried to intercept the driver, the vehicle drove off at fast rate of speed and police lost site of it and did not pursue.

Police were notified of a crash nearby a short time later.

Major Collision Investigation Unit detectives are investigating the circumstances surrounding the fatal crash including whether speed was a factor.

The Professional Standards Command has been notified and will oversight the investigation as per normal procedure when an incident occurs following recent police contact.

The road toll now stands at 156 this year compared to 189 at the same time last year.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or file a confidential report online at www.crimestoppersvic.com.au

Have you signed up to the Bendigo Advertiser's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in central Victoria.