An international student has been killed in Sydney's south-west after he was struck by a car allegedly driven by his friend.

Ismail Hossain was being dropped home on Cornelia Street in Wiley Park when his friend, 24, allegedly went to reverse but instead hit the accelerator.

The car, a Toyota Corolla, hit and killed Hossain at the scene just after midnight.

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"We just heard a loud noise, like hitting a house, so we get outside and we saw someone else crying," a witness told 9News.

Hossain, originally from Bangladesh, lived at the property with four other students.

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The driver of the Toyota was arrested at the scene and was taken to hospital for testing.

He was later taken to Campsie Police Station and has been charged with negligent driving occasioning death.

He was refused bail and is expected to appear at Parramatta Bail Court today.

Police have set up a crime scene and are investigating the incident.