NT driver shot dead behind wheel

A man has been shot dead behind the wheel of a car in Darwin's north.

Police were called to Union Terrace, Wagaman, just before 3am on Saturday after reports of a traffic crash.

A car had come to rest in the front yard of a home.

"On investigation, they realised the driver had been involved in a firearm incident, and he has since died," a police spokesman told AAP.

The man is yet to be identified but is believed to be in his late 20s or early 30s.

A passenger who was in the dead man's car is being questioned.

Detectives suspect a second vehicle was involved and have called for any witnesses who were on Union Terrace between 2.30am and 3am to come forward.

"Detectives are trying to piece it all together," the police spokesman said.