Tragedy has incredibly been avoided after a driver erratically reversed into an oncoming truck in Gippsland.

Dash-cam footage captured the dramatic incident, which happened on the Princes Highway near Lakes Entrance on Monday.

A man is seen trying to open the driver’s door while the 4WD reversed across the highway, with vehicles travelling at 100km/h on both sides of the roads.

The truck driver managed to brake quickly enough to limit the damage.

Click PLAY below to watch the footage