The 24-year-old woman is facing a string of offences and remains in custody after she was arrested in Hillvue just before 11pm.

The woman, who police allege was on bail and banned from entering Tamworth, was allegedly spotted behind the wheel of a Holden Commodore near McDonalds in South Tamworth about 10.30pm.

"The female driver was recognised as a person wanted for a previous police pursuit offence and outstanding bail matters," Oxley Detective Acting Inspector Jason Darcy told the Leader.

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"Police followed the vehicle and a pursuit ensued."

Police said the driver then lost control at the intersection of Duri and Hillvue Roads.

"The vehicle has spun, and collided with the front end of an unmarked police vehicle.

"The driver and a passenger alighted and fled the scene, and officers gave chase."

The pair were captured shortly after, near the crash site.

The woman was taken to Tamworth police station and charged with outstanding matters, along with several new offences including police pursuit.

A passenger was arrested at the scene and taken in for questioning, but has since been released without charge.

The woman was refused bail to front Tamworth Local Court on Tuesday.

Police said the marked police car was damaged but the officers inside were not injured.