A man is in custody following an aggravated armed robbery that occurred in New Town yesterday.

Police and emergency services were called to the scene in Park St about 6am following a report a woman had been assaulted with a baseball bat.

Investigations suggest the woman was walking along Park St near the Tower Motel when two men in a white 2017 Mitsubishi Outlander SUV drove up to her and alighted from the vehicle before assaulting her and stealing property before driving away.

Police believe the incident was targeted and the parties are known to each other.

Members of South East CIB have arrested a 35-year-old man in relation to this matter and investigations are continuing to locate the second man.

The woman, who received head injuries, remains in a stable condition in the Royal Hobart Hospital.

Anyone with information, or in possession of CCTV or dashcam footage depicting a 2017 white Mitsubishi Outlander, are asked contact Police on 131444 and quote OR 816966.