Driver allegedly ‘involved in domestic incident’ before bus crash

A man has died and seven people are in hospital after a bus with 26 passengers onboard and a car collided in a horrific crash in NSW's Central West this morning.

It's alleged officers were driving to a domestic incident but saw the Mazda being driven away from the location and identified the driver as "being involved in the domestic" on the Mitchell Highway in Dubbo.

Assistant Commissioner Rod Smith said officers attempted to pull the 32-year-old driver over but he failed to stop about 9am.

READ MORE: Aussie charity founder to run 1400km in memory of the Boxing Day tsunami

A pursuit was initiated for a short time but was "terminated due to safety concerns".

Smith said officers were attempting to find other ways to stop him before the crash at 9.15am, which occurred 1km east of the Mitchell Highway and Eulomogo Road intersection.

"That vehicle then crossed to the other side of the road and collided head on with a bus travelling in the other direction," Smith said.

"The 55-year-old woman that was driving the bus took evasive action and probably saved the lives of a lot of people.

"We are lucky that nobody else was seriously injured or killed."

READ MORE: One-punch killer walks free from prison

The 32-year-old driver of the Mazda died at the scene. He is yet to be formally identified. 

Seven people have been admitted to Dubbo Hospital and are being treated for minor injuries.

The bus driver has been taken to hospital for mandatory testing.

Smith said it was the manner of driving, not speed, that caused the police chase to be terminated.

He said it was too early to say what the nature of the domestic incident was.

READ MORE: All six Bondi Junction Westfield attack victims stable in hospital as beach vigil announced

Premier Chris Minns confirmed that police are investigating the circumstances around the crash.

"There's been a major traffic incident just outside Dubbo," Minns said. 

"Emergency service personnel are on the scene, as are crash investigation officers

"Paramedics have been able to dispatch those that needed to go to hospital, to hospital."