According to witnesses, the unknown man crashed his Vauxhall Insignia into a Peugeot 107 on West Street before then running into the grounds of the nearby Ryde School, in what is thought to be a bid to escape arrest.
It is thought the wanted man is currently still within the grounds of the school.
Multiple Police units including undercover mainland roads policing vehicles have descended on the scene and the road is currently blocked.
Southern Vectis buses Routes 4 and 9 are currently delayed.
Police have confirmed they were carrying out a routine stop when the occupants fled, leading to a pursuit.
1 man is thought to have been located in Lind Street.
UPDATE @ 20:00 – The search has been brought to an end, however it remains unclear as to whether all occupants have been detained.
There is not thought to be any risk to the community.
UPDATE FRIDAY – Hampshire Constabulary have confirmed that there were 3 occupants in the car.
A 29-year-old man from Birmingham has been arrested on suspicion of aggravated vehicle taking and failing to stop. He has been bailed until 4th November.