Police have revealed details of a dramatic incident that allegedly began with dangerous driving and ended with assault in downtown Wellington late this afternoon.

A police spokesperson said a man was under police supervision in hospital and was facing multiple charges following an incident that began when police received multiple reports of a dangerous driver on Willis St about 4.30pm.

"The [alleged] offender was in a small red car, driving northbound at excessive speeds through a southbound bus lane.

"Several pedestrians had to move out of the way to avoid being hit as he went through red lights."

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The man was stopped in traffic as it attempted to merge onto Customhouse Quay, and was then confronted by another man about his manner of driving, the spokesperson said.

"He abandoned his vehicle and followed the man into a nearby building where an alleged assault has occurred.

"Police arrived at the scene to find the alleged offender with injuries as he left the building.

"He will face multiple charges in relation to the incident and is currently under Police supervision in hospital."

The other man, who was still inside, had been taken to hospital for observation.

Witness Aimee Bezett told Fairfax the altercation took place between the alleged offender and a courier driver whose van he almost hit.

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"Finally he stopped, and the courier driver he almost hit chased the car and took his keys," she said.

"The [alleged offender] chased the courier driver into a building, beat him up, then jumped from the second floor and broke what appeared to be both his legs."

Bystanders then restrained the alleged offender until police arrived, Bezett told Fairfax.

Jack Price had been crossing with the lights when the alleged offender's car almost hit him.

"He almost killed me, I swear to God, I reckon he was going about 80km/h," he told Fairfax.

The alleged stoush caused traffic disruption in the area, but traffic was now flowing.

Anyone who may have witnessed the incident is asked to contact Wellington Police on (04) 381 2000.

Information may also be provided anonymously to Crimestoppers on 0800 555 111.

No further information on the matter will be released tonight while police continue to investigate, the spokesperson said.