Police will conduct a critical incident investigation into the incident, which occurred after Newcastle City Police District officers patrolling the CBD attempted to stop a motorcycle on Hunter Street near Steel Street about 3am on Wednesday.

A pursuit began before officers broke off for safety reasons.

"The motorcycle continued to travel along Hunter Street before being found crashed on Scott Street, after hitting a pole," police said in a statement.

"Officers rendered first aid; however, the male rider died at the scene. He is yet to be formally identified."

Detectives established a crime scene and specialist forensic officers combed the scene until about 10.30am on Wednesday.

About half hour earlier the mangled motorcycle was taken away on the back of a tow truck.

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City of Newcastle staff also arrived to remove damaged kerbside infrastructure, including a smart pole which had been snapped in two and out of its secured footing.

Hunter Street resident Karen Burge said she was awoken by the early morning crash.

"About three o'clock this morning. I heard the sound of metal scraping along metal and then the accelerator of a motorbike stuck on," she said.

"I live in Hunter Street. I felt like it was a mishap on the tram lines.

"It's a sad way to start the day given someone has lost their life."

Light rail services were initially suspended along the length of the Newcastle line, but recommenced between Newcastle Interchange and Queens Wharf for the morning peak.

Scott Street was shut but has since reopened.

Port Stephens-Hunter police will conduct the critical incident investigation. Their findings will be subject to an independent review.

All information will be provided to the coroner.

Anyone with information is urged to call Crime Stoppers on 1800 333 000.