Officers were first called out to the town following reports of suspicious activity involving the orange Toyota Camry about 4.30am.

The young male driver attempted to avoid detection and officers decided to not activate their lights and sirens due to safety reasons, according to police.

Shortly afterwards, the hoon lost control of the Camry and left the road, mounting the curb and ploughing into a sign near the intersection of Victoria and Albert streets.

The offender fled the scene and police were yet to catch him as of Wednesday morning.

The recovered stolen vehicle was transported to Ballarat, where it was examined by a forensics team.

An investigation was ongoing.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report to www.crimestoppersvic.com.au