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Police were called to Beauchamp Road in Maroubra just after 4am following reports that a teenager had been hit by a car.
At the scene, officers found a teenage boy with serious injuries to his legs and lower body.
The boy was treated by paramedics at the scene and taken to hospital in a stable condition.
Police allege the vehicle left the scene before police arrived.
Police started investigating the circumstances around the incident.Â
Later this morning, a 22-year-old man was arrested on New Orleans Crescent, in Maroubra, about 9.30am today.
A Toyota Prado was seized.
The 22-year-old was brought to Maroubra Police Station where they faced charges of wounding a person with intent to inflict grievous bodily harm and for failing to disclose the identity of a passenger.
He was refused bail and will appear in Parramatta Local Court tomorrow.