A Hampton Park man was arrested following a fatal hit-run collision in Jeetho on Thursday afternoon, 11 August.
Police were told the head-on collision occurred on the South Gippsland Highway just before 4.30pm.
The driver of one of the cars fled the scene before being arrested a short distance away, police say.
The oocupant of the second vehicle died at the scene.
The 25-year-old from Hampton Park assisted police with their enquiries.
Detectives will investigate the circumstances surrounding the collision including reports of an erratic driver on the South Gippsland Highway just prior to the collision.
Major Collision Investigation Unit detectives attended the scene.
Anyone with information, dashcam/CCTV footage is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report online at crimestoppersvic.com.au