A car has crashed into a crowd of rugby league supporters in the eastern Australian city of Newcastle, injuring at least 10 people, including three children.

New South Wales police said two of the injured — a five-year-old girl and a 67-year-old man — were in a critical condition. The remaining eight were in stable condition in hospital.

The incident occurred in Newcastle's Wallsend suburb, approximately 110 kilometres north of Sydney.

Fans had gathered on the streets to farewell the local rugby league side, the Newcastle Knights, who were departing for the National Rugby League grand final against the Sydney Roosters, scheduled to be held in Sydney on Sunday.

Police arrested the driver, identified as an 18-year-old man, who was subsequently taken to hospital for mandatory testing. Authorities said they were investigating the incident and that initial inquiries indicated it was not terrorism-related.

Newcastle Lord Mayor Gavin Morris said the driver was a rugby league fan who lost control of his vehicle. Morris told national broadcaster ABC: "He was revving the car, he was excited, he was a supporter, he was there for the joy of the moment. Somehow he lost control of the car … and he's gone into the crowd."

Prime Minister Anthony Albanese described the incident as horrible and said his thoughts were with everyone injured or involved. "Rugby league brings people together, and this should have been a weekend of excitement and pride for Newcastle fans," Albanese wrote in a social media post.