Sydney Tram Derailed After Car Accident

A Sydney tram has derailed after it collided with a car in Sydney's eastern suburbs, creating traffic headaches for Australia Day revellers.

Traffic was temporarily closed in both directions on South Dowling Street at Moore Park following the accident.

Transport NSW said on Sunday night that one of two lanes had been opened each way between Flinders and Cleveland Streets.

Sydney light rail. Image: AAP

NSW Police said there were no reports of injuries after they were called to the scene along with the NSW Fire and Rescue Service about 4.45pm.

The L2 Light Rail service was suspended between Central and Moore Park with replacement buses put on during the clean-up.

The light rail service had already been suspended between Circular Quay and Town Hall because of safety concerns due to Australia Day celebrations.