A white Audi sedan and a gold Honda sedan collided at the intersection of Links and Glengala roads in Sunshine West just before 1am.
The impact of the collision then led to both vehicles crashing into two cars parked on Links Road.
The driver of the Honda, a 69-year-old Sunshine West man, died at the scene.
He was the only person in the Honda.
Police have been told a number of people who were in the Audi at the time of the collision were seen running from the crash scene.
One person who was in the Audi, a 22-year-old Wyndham woman, is speaking with police.
It is believed the Audi had been travelling north along Links Road and the Honda had been travelling east on Glengala Road when the cars collided.
Police want to speak to any witnesses or anyone with dash cam footage.