A 17-year-old male who allegedly stole a car from a home in Fannie Bay on Sunday and led police on a pursuit was finally arrested hiding in a creek, NT Police said.

Northern Watch Commander Alex Noonan said police had observed the vehicle around 7:25pm and attempted to apprehend it by engaging in a pursuit.

Police called off the pursuit due to dangerous driving, however located the vehicle parked near Rapid Creek a short time later.

Police searched the area and located the teen hiding in the creek, they said.

He is expected to be charged with multiple offences including unlawful use of a motor vehicle.