Police have laid further charges against a driver accused of crashing into another vehicle at a popular Melbourne strip, killing a teenager.

The 16-year-old girl was critically injured when the Volkswagen Passat allegedly collided with an Alfa Romeo on Lygon Street on March 12.

She was taken to hospital but later died. The girl's parents and two pedestrians were also injured in the incident.

The alleged driver of the Volkswagen, a 40-year-old Essendon man, was originally charged with offences including negligently causing serious injury and possessing methylamphetamine.

Detectives on Friday laid the further charges of culpable driving and dangerous driving causing death.

The man has been remanded to appear in Melbourne Magistrates Court on March 21.