Just after 6pm on Tuesday emergency services were called to Dalton Avenue, following reports a woman had been struck by a car.

Police have been told the 61-year-old woman was struck by a Toyota Corolla and died at the scene.

The driver of the Toyota Corolla, a 22-year-old woman, was arrested and taken to Singleton Hospital for mandatory tests before being taken to Muswellbrook Police Station. She has since been released.

Officers from Hunter Valley Local Area Command established a crime scene and are continuing with their inquiries into the incident.

Initial inquiries suggest the women are known to each other.

A report will be prepared for the Coroner.

Witnesses are urged to come forward and contact Crime Stoppers on 1800 333 000.