Shaye Tallis, from Barrack Heights, was struck and killed while crossing at the traffic lights on Wattle Road, near Benson Avenue, Shellharbour City Centre about 6pm.

Paramedics treated Shaye for head and chest injuries, before he was flown to Sydney Children's Hospital, Randwick, in a critical condition, where he later died.

Crash investigators will now look into and determine the sequence of events that lead up to the collision.

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Police do not believe the teen was wearing a bike helmet at the time of the crash and the 25-year-old female driver, who lives in the area, was uninjured.

Lake Illawarra Police District's Acting Inspector Anthony Peterson said Shaye's family members arrived at the crash site before police rushed them to the hospital.

"The female driver was taken for mandatory testing which occurs in likely-to-be fatal, or fatal collisions," he said. "There was no indication of any alcohol.

"The driver has given a version of events for the accident, has spoken to the crash investigation unit officers and is assisting police with their inquiries. She has not been charged at this stage. She is distraught."

The Southern Region Crash Investigation Unit is handling the case and established a crime scene at Wattle Road on Tuesday night.

Acting Insp Peterson said photos were taken at the scene, witnesses were interviewed and investigators would revisit the road to assess the phasing of the traffic lights and determine who had right of way.

He said there was "no indication" the woman was speeding, driving dangerously or neglectfully, using a mobile phone, however the manner of driving would be investigated further.

"There were skid marks on the road, which is usual for a crash scene," he said. "Those will be examined."