A cordon was put in place around the crash scene at the junction of West Street and Glossop Road after emergency services were deployed at around 10pm.
The collision, which happened close to the University tram stop, involved a Stagecoach double decker and a silver Peugeot 208.
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The bus involved in the smash struck one of the overhead line support poles associated with the tram network.
Trams are suspended between Shalesmoor and Cathedral this morning as a result of the incident.
A shuttle service is running from Malin Bridge and Middlewood to Shalesmoor.
It is also believed to have hit a section of pedestrian safety railings.
But police at the scene said that nobody was seriously injured in the incident.
Debris from the crash scene was cleared away and emergency maintenance work was carried out to the damaged metal
Trams and buses are diverted this morning while repairs are carried out at the crash scene and investigative work is completed.