The hit-run occurred at the intersection of Hallam and Pound roads in Hampton Park when a vehicle and cyclist collided before 4.30am.
According to Victoria Police, the male driver of what is believed to have been a red 2010 Holden Cruze sedan failed to stop after the crash.
The cyclist, a 58-year-old Hampton Park man, later died at the scene.
Police are calling for witnesses as they hunt for the man believed to have been behind the wheel.
Acting Sergeant Cameron Merrett said it was clear the driver was aware of the crime.
“There is absolutely no doubt in my mind that this driver knew that they had hit a person or hit something and should have stopped,” he said.
The car believed to have been involved was found burnt out in Glen Waverley about 5am.
It was stolen from Doncaster yesterday morning.