A young woman is in a critical condition in hospital after she was hit by a garbage truck during a night out in Melbourne.

The woman in her 20s was struck by the truck, which allegedly failed to stop, at the corner of Elizabeth and Lonsdale Streets after 4.30am (AEDT) Sunday, police say.

A 40-year-old Wallan man has been arrested and is speaking with police.

The woman’s condition is critical, a Royal Melbourne Hospital spokeswoman said.

Police are reviewing CCTV footage in the area.

Anyone who may have witnessed the incident should come forward, especially two women who were at the scene, police said.