South Yorkshire Police said the force received a call at 9.46pm reporting of a road traffic collision on Glossop Road in Sheffield.
It is believed that a silver Peugeot 208 collided with a bus, causing a damage to the tram lines.
The drivers of the car and the bus were not injured.
A cordon was put in place around the crash scene at the junction of West Street and Upper Hanover Way after emergency services were deployed.
The collision, which happened close to the university tram stop, saw the bus smash into one of the overhead line support poles associated with the tram network.
The police said the road remains closed while repairs take place this morning.
The incident has forced the tram and bus services in the area to be diverted.