Search for driver who rammed Vic police

A man who rammed two police vehicles during a chase through the centre of Melbourne after an alleged drug deal is on the run.

Victoria Police are looking for the driver of a black BMW that was abandoned in Downie Street in Melbourne's CBD about 1pm on Tuesday after the police chase.

Uniformed police initially approached the driver near the intersection of Queen Street and A'Beckett Street about midday after a tip-off from the public about an alleged drug deal taking place.

As officers tried to arrest him, the man drove off in his black BMW, hitting cars in his getaway.

"The male has rammed two police vehicles in his attempt to get away," Inspector Paul Tymms told reporters at the scene.

"Police conducted a short pursuit and terminated due to safety concerns to the public."

Eye witnesses told police they saw the driver throw money from the car during the police chase, before eventually abandoning the car and catching a taxi from Spencer Street.

The driver reportedly had blood on his face.

Police say no shots were fired during the confrontation amid reports the driver may have been armed and damage to the BMW's windscreen.

"I can guarantee no shots were fired," Insp Tymms said.

"There have been reports the male was armed. Police are still investigating those reports, and it has not been confirmed."

Police say they know the identity of the driver, and are urging him to hand himself in to authorities.

"I would describe his actions as extremely desperate ... dangerous to himself, the public and the police," Insp Tymms said.

"I do urge him to hand himself to police at the first available opportunity."

Investigators are tracking down the taxi that picked up the driver.