A ute has been used in an alleged road rage attack, repeatedly reversing into an already damaged car.

The tense confrontation unfolded about 4pm yesterday on Frewin Avenue in Woodbury, in the NSW Hunter region.

Footage showed the moments before the confrontation, which appeared to witnesses to erupt out of nowhere.

People on the street filmed as the incident escalated, with the ute repeatedly reversing into another vehicle as its driver attempted to leave.

The driver of the ute then left the scene, however police caught up with her an hour later.

A 38-year-old woman was charged with reckless or furious driving with intent along with being behind the wheel of an unregistered car.

She has been released on bail and will face court next month.