The cyclist, a 42-year-old man, was treated at the scene before being taken to John Hunter Hospital in a critical condition.
He died of his injuries the next day.
After an initial investigation, police seized a Toyota FJ Cruiser from a home in Rusty Lane, Branxton, for forensic testing.
A 40-year-old man was arrested at the house and taken to Cessnock Police Station, where he was charged with dangerous driving occasioning death, driving in a dangerous manner and negligent driving occasioning death.
He was granted conditional bail to appear at Belmont Local Court on January 14.