It is understood that the driver of the taxi was attacked by two passengers and forced out of the car in the Oliver Bond area of the city at approximately 8.30am.

The stolen taxi later crashed into a pole in the James's Street area, narrowly avoiding a car coming in the opposite direction. The crash happened at approximately 8.45am.

One of the two men in the car - who was in his 20s - was seriously injured, and was later pronounced dead in hospital. It is understood he was a passenger in the car.

The other man - who is also in his 20s - was arrested and is currently being questioned by gardai.

It is understood he was not injured in the crash.

"Investigating Gardaí have arrested a male, mid 20s, in connection with this investigation and he is currently detained at Kilmainham Garda Station under Section 4 of the Criminal Justice Act, 1984," a garda spokesman said.

"The vehicle involved was the subject of an unauthorised taking a short time prior to the incident, (8.30am), in the Dublin 8 area.

"The vehicle was not being pursued at the time of the collision. No other persons were seriously injured during the incident."

Gardaí are appealing for witnesses or anyone with information to contact them at Kilmainham Garda Station on (01) 6667900, The Garda Confidential Line 1800 666111 or any Garda Station.

The State Pathologist has been informed and a post mortem will take place later today.

The taxi driver's injuries are not serious.