A garbage truck driver has been charged with drunk driving after hitting a Tasmanian woman cycling in New York City as she swerved to avoid a car blocking a bike lane.

Madison Jane Lyden, 23, was cycling with a friend near Central Park about 4:45pm on Friday (local time) when a stopped car suddenly pulled out in front of her, forcing her to swerve into traffic, police said.

US network NBC reported a friend and passers-by delivered first aid but she was pronounced dead after being rushed to hospital.

Truck driver Felipe D Chairez, 44, has been charged with driving while intoxicated, driving while of ability impaired and operating a commercial vehicle with an alcohol reading of .06 per cent or less, the New York Police Department (NYPD) confirmed.

Beer cans were found in the garbage truck and he was arrested at the scene, local media reported.

It is understood Ms Lyden was not wearing a helmet, which are not required under New York State law.

Diabetes Tasmania chief executive Caroline Wells said she met Ms Lyden when her father built a house in support of the charity, describing her as a fun-loving and caring person.

“Madison took everything that life had to offer and she was always doing different things and being in New York is probably just an example,” Ms Wells said.

She said her heart went out to the Lyden family.

“I cannot imagine how they are feeling,” she said.

“Our thoughts and love are with them all. We just send our heartfelt and deepest condolences.”

Grieving friends say that to know Madison Lyden was to love her. Photo: Twitter

A former employer wrote on Facebook Ms Lyden was “a fantastic [swimming] teacher and beautiful girl who we will all miss so much”.

A garbage truck driver has been charged for drunk driving after hitting a Tasmanian woman cycling in New York City as she swerved to avoid a car blocking a bike lane.

Diabetes Tasmania chief executive Caroline Wells said she met Ms Lyden when her father built a house in support of the charity, describing her as a fun-loving and caring person.

“Madison took everything that life had to offer and she was always doing different things and being in New York is probably just an example,” Ms Wells said.

She said her heart went out to the Lyden family.

“I cannot imagine how they are feeling,” she said.

“Our thoughts and love are with them all. We just send our heartfelt and deepest condolences.”

A former employer wrote on Facebook Ms Lyden was “a fantastic [swimming] teacher and beautiful girl who we will all miss so much”.

“I was just praying, ‘please God, help her’,” one witness told NBC.

“I will never forget that, that gave me the chills.”

New York City mayor Bill de Blasio visited the scene.

“It’s just disgusting what happened,” he told the NBC.

“Here’s someone doing everything possible, [she was] clearly driving in the bike lane.

“We know in some of these cases we’ve lost innocent people because drivers didn’t care.”

New York City transportation advocacy group Transportation Alternatives said it was “a crash waiting to happen” because “lazy and entitled drivers” were parking, dropping people off and idling in bike lanes.

The Department of Foreign Affairs and Trade (DFAT) said it was providing consular assistance to Ms Lyden’s family.