The crash happened in front of the child's home on Woodland Road around 10 p.m.
Investigators said the child ran into the road while the family was loading up their vehicle.
At the same time, a 2009 Toyota Prius was traveling west down Woodland Road.
The Prius collided with the child in the road. Investigators said the driver of the Prius was not speeding or under the influence of any impairment.
The driver of the Prius also remained on scene and cooperated with the investigation.
The 2-year-old was taken to UNC Hospital, but he died on December 28 as a result of his injuries.
"This is a truly tragic incident. We offer our heartfelt condolences to the family of the child and our thoughts and prayers to all involved," Lt. Kevan Anderson with Garner Police Department said.