Extra Police units were called to High Street, Oakfield in the town at around 17:45 after a Black Citroen Saxo, which was already being pursued by Police, was involved in a collision with a Peugeot estate car as it tried to squeeze through a narrowing gap.
Witnesses have told Island Echo how the small hatchback tried to pass between a Southern Vectis Route 2 double decker bus and another vehicle, before realising the gap was too small. The collision, which has caused minor damage to both vehicles, ended the pursuit.
Island Echo understands the Citroen had been stolen.
Thankfully no persons have been injured in the incident, that occurred in a busy residential area.
The 17:30 Route 2 bus between Ryde and Newport has been delayed by 15 minutes for the remainder of its journey.
The road remains open.