Matthew Terrance O'Connor, 27, of Heidelberg, was arrested last Friday morning at a home in Heidelberg and charged with culpable driving.

He is accused of killing cyclist Peter McGuffie, 54, in a hit and run on Barkly Street, West Footscray on Thursday.

Mr O'Connor was supported in court on Tuesday by a small group of family members.

His grandmother, who would not give her name, told media outside the court the family was trying to be strong.

"We're fine, we'll be fine. It's Matthew we're worried about now ... he's a gorgeous kid. He made a mistake. And he's terribly sorry."

Asked what the family thought about what had happened, she said: "It's devastating. It was an accident. He made a split-second decision."

Mr McGuffie, 54, was riding along Barkly Street at 3.15pm Thursday when he was hit by a car from behind and killed.

The New Zealand national died at the scene.

The ute that struck him, a Holden Rodeo allegedly driven by Mr O'Connor, then crashed into a parked car.

The ute sustained significant damage and was dumped in nearby Argyle Street.

Mr O'Connor, 27, was charged with culpable driving, dangerous driving causing death, failing to remain at an accident and failing to render assistance.

He has also been charged with breaching bail.

Police will allege Mr O'Connor was photographed by a witness leaving the scene.

Mr O'Connor was remanded in custody on Tuesday at the Melbourne Magistrates Court, to reappear on September 20.

Magistrate Elizabeth Lambden gave him permission to appear via videolink, so he would not have to be present in court.

He did not apply for bail.