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The driver was reversing out of an angled carpark in Dundas St at 2pm yesterday when they hit the police vehicle, Senior Sergeant Anthony Bond, of Dunedin, said.
The rear right of the vehicle was damaged in the collision, and when officers did a u-turn and signalled the car to stop, it accelerated fast and sped off.
It was seen speeding along Forth St, before making a right turn down Albany St.
The pursuit was abandoned due to speed and danger to the public, Snr Sgt Bond said.
There was no injury to police staff in the incident and officers would be checking CCTV in the area.
The investigation would continue to identify and speak to the driver.