A man arrested after yesterday’s incident on Creggan Hill has been released on bail, pending further enquires.
The incident happened shortly before 4p.m. yesterday afternoon.
A burgundy coloured BMW is alleged to have struck a pedestrian before colliding with a silver Ford Puma near Helen Street.
It was reported that the driver of the BMW fled the scene but was arrested by police a short while later.
One local resident who lives feet away from where the incident took place said she witnessed the driver of the BMW leave the scene.
“I heard a really loud bang and came rushing outside. I saw the driver of the BMW emerge from the car. He then made off in the direction of Helen Street.”
The mother of two said her daughter had just arrived home from school moments before the incident.
“The two cars ended up on the footpath up against the house. My daughter had literally just arrived home from school before it happened. She walks on the side of the street the cars are on when she is coming home from school - it’s a miracle no one was killed here today,” she said.