Three people are dead after a car flipped and another car caught fire in a crash on Christmas Eve in Melbourne.

The two cars collided after 7.30pm on Palmers Road in Point Cook just hours before Christmas Day.

Two occupants of one car and another in the second car died at the scene.

Another person in the second car has been taken to hospital with non-life threatening injuries.

Major Collision Investigation Unit detectives are investigating the crash, and all people involved are yet to be formally identified.

-AAP