Police have confirmed the teen boy is in a serious condition.
Police say the boy was 15, not 16, and they are investigating the inident.
"About 3.10pm today, (Sunday July 5), the 15-year-old boy was riding a bicycle when he was struck by a utility at the intersection of Bridge Road and Princes Highway, Nowra," a police media release said.
"He was treated by New South Wales Ambulance Paramedics at the scene before being taken to Shoalhaven District Hospital.
"He has since been airlifted to Children's Hospital at Westmead in Sydney in a serious condition."
Police say they arrested the male driver of the ute and he was taken to Shoalhaven District Hospital for mandatory blood and urine testing.
Officers from South Coast Police District along with Crash Investigation Unit have commenced inquiries into the circumstances surrounding the incident.
A 16-year-old has been flown to Westmead Children's Hospital in a critical condition after a car accident at the intersection of Bridge Road and the Princes Highway, a NSW Ambulance spokesperson said.
It is understood the teen was riding a bike which collided with a four-door ute shortly after 3pm.
The accident occured at the intersection of Bridge Road and the Princes Highway.
The intersection remains closed, and traffic is heavy on norht-bound lanes of the highway through Nowra.
More information as it becomes available.