A man has died in hospital after a car crash in Melbourne's south-east.

Police believe the driver pulled out of a service lane at the intersection of Quinn Street and the Princes Highway in Dandenong before being hit by a ute around 8.30 last night (AEDT).

The man, aged in his 60s, was taken to hospital with life-threatening injuries where he was pronounced dead a short time later.

The 27-year-old driver of the ute escaped unhurt.

Investigations are continuing and police are appealing for witnesses to the incident.

The man's death is the 275th on Victorian roads this year, seven less than last year.