It is believed he was a father of five and lived only streets from where the accident occurred.

He was sitting behind the wheel of his cab stopped at a set of traffic lights on Anakie Rd when an out-of-control vehicle ploughed into his car at 6.15pm, police said.

A Holden commodore travelling on the Midland Highway toward the city suddenly veered far to the left at high-speed driving straight into the side of the parked cab.

Authorities said the taxi driver died on the scene. The other driver was last night helping police with their inquiries.

His death marks the end of a horror Christmas week on Australia's roads with nine dead.

On Christmas Eve a man driving in Dandenong become the fourth to die on Victoria's roads during the holiday season.

A taxi driver was killed in a freak accident in Geelong. Picture: Stephen Harman

Police said the driver, believed to be in his 60s, was pulling out of a service lane at the intersection of Quinn St and the Princes Highway when he and a ute collided about 8.30pm on Christmas Eve