A toddler struck by a car in Melbourne‘s east is now in a stable condition as CCTV emerges of the out-of-control vehicle that killed a woman and left a man fighting for life.

Three people — a 60-year-old man, a 59-year-old woman and two-year-old boy — were walking down Coleman Rd in Wantirna South about 12.20pm on Thursday when they were hit from behind by a car.

WATCH THE VIDEO ABOVE: One person dead after car hit family in Melbourne

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The Toyota Yaris continued down the road and gained speed before crashing through the fence of a playground.

The woman died at the scene, while the man was taken to The Alfred in a life-threatening condition.

The toddler suffered serious injuries and was taken to the Royal Children’s Hospital.

Police say the 91-year-old woman behind the wheel of the Toyota Yaris was not seriously injured but was taken to hospital as a precaution.

On Friday morning, there was an update on the health of the toddler, whose condition has been upgraded to stable.

The 60-year-old man remains in hospital.

CCTV has emerged of the aftermath of the tragic incident in which the Toyota Yaris can be seen hurtling down Coleman Rd for about 200m after it struck the trio.

The video shows a hubcap flying off the car, rolling down the roads as it trails the car.

Superintendent Justin Goldsmith said the car had been on the footpath for 40m to 50m before it hit the pedestrians.

He said the elderly woman sustained minor scratches but appeared emotionally shaken.

She remains in hospital and is not expected to be interviewed on Friday.

It is unclear if she will be charged.

Investigations are ongoing.