The 67-year-old woman was killed when a car crashed into her as she was crossing the road on April the First Street in the coastal town of Paralimni.
Witnesses said that the car then gained speed and drove off before another car gave chase and eventually managed to corner the driver.
A citizens’ arrest was made and he was handed over to police.
The Swedish foreign ministry confirmed that the Swedish national had died at the popular tourist destination and that an investigation was underway.
“The incident happened on January 12th. The woman’s family has been notified and the embassy is following this very closely,” spokeswoman Gufran Al-Nadaf told The Local.
The driver was identified as a 27-year-old Georgian national living on the island, where he works as a builder.
The victim was rushed to Famagusta General Hospital where doctors discovered that the woman had sustained serious injuries to her head and internal bleeding.
Due to the seriousness of her condition, she was transferred to Larnaca General Hospital where she succumbed to her injuries later that night.
The motorist, who passed a breathalyzer test, has been charged with reckless driving and abandoning the scene of an accident.
He was on his way home with his father at the time of the incident.
He could face as much as three years in prison should he be found guilty by the Famagusta Court.
Commenting on the incident, Cypriot Justice Minister Sofocles Sofocleous said, “It is totally intolerable and inhumane for somebody to just flee the scene of an accident especially when somebody has been run over.”