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It’s understood a white van was travelling west on Thames Promenade in Chelsea Heights, near the intersection of Mulkarra Drive, when it struck the toddler at about 9.10pm.
The child was on a small balance bike using the pedestrian crossing, accompanied by a man walking with them.
An off-duty police officer who was passing stopped to provide first aid, before emergency services arrived.
The child was taken to hospital with serious injuries and remains in a critical condition.
The man with the toddler was not injured.
A 29-year-old Clyde man, who was driving the van, was arrested and interviewed but has been released pending further enquiries.
The investigation into the crash continues.