Police responded to an alleged aggravated burglary in Peter Street, Bell Post Hill about 4am this morning (24 December), where a vehicle was stolen.
The BMW was monitored by the Air Wing and other police units towards the city where a short pursuit occurred.
The vehicle caught fire before crashing into a pole on Toorak Road, Hawthorn about 5,30am.
Two male youths were arrested on scene and are assisting police with their enquiries.
Anyone with information that could assist police with their investigation is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report online at www.crimestoppersvic.com.au
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