A teenage girl has died following a horrific tram incident in Sydney.

The 16-year-old became trapped under the light rail on George Street, Haymarket just after midnight on Thursday.

Despite eventually being freed by rescue teams, she suffered critical injuries and could not be saved.

There are reports from witnesses that the teen was attempting to jump through the gap between carriages when the tragedy occurred.

The driver, a 52-year-old man, has been taken to hospital for mandatory testing.

Police established a crime scene and are investigating the circumstances surrounding the crash.

A report will be prepared for the information of the Coroner.

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