The man, aged in his 50s, can be seen in CCTV video smoking a cigarette and waiting for a break in the traffic before trying to cross Sackville Street in Fairfield at 5.46am on Monday.
A black Honda Accord with green P-plates turned a corner, rolled through a stop sign, hit the man and then sped off, the video appears to show.
Someone walking down the street ran into a nearby petrol station and called emergency services.
Paramedics treated the victim for critical head injuries but he died at the scene.
“Honestly, I’ve known the guy long time, he’s a very nice guy -he’s got a family, four children,” friend Michael told 9News.
A crime scene has been established and police are asking anyone who was in the area from 5.45am to 5.50am, including people with dashcam footage, to come forward.