The boy's family realised he was missing and was trying to catch up to him when he ran on to the road and was struck by a car just before 9pm on Sunday at Laverton, police said.
The driver allegedly failed to stop and a short time later police arrested a 21-year-old man at a Laverton address.
The boy was taken to hospital in a critical condition but on Monday morning his condition was downgraded to serious but stable.
More to come.
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