A WOMAN has been shot dead and three cars have been involved in a spectacular crash in related incidents in the Melbourne suburb of North Sunshine overnight.

Homicide squad detectives are investigating after a female was found with gunshot wounds outside Sunshine Hospital about 9pm last night.

A number of car incidents are involved with the shooting and police were last night trying to determine the exact chain of events that led to the woman's death and the multi vehicle crashes.

One man has been arrested, he is believed to be involved in the shooting and was last night assisting police.

It is understood the man and woman were known to each other.

Pictures from the scene show two cars, one on its roof and the other with its front end smashed, sitting near the corner of Furlong Rd and Romsey Ave.

A few hundred metres away, closer to the Sunshine hospital, a third vehicle had been cordoned off by police.

Residents in the area said they heard gunshots, while detectives and forensic investigators established multiple crime scenes spreading hundreds of metres along Furlong Rd.