Police said emergency services were called to Marine Drive at the junction with Arundel Road just before 3am on Saturday, September 7.
Police said the collision involved a white Jeep Cherokee and a pedestrian.
A Sussex Police spokesperson said: "The pedestrian, a 20-year-old man from Seaford, was taken to hospital with serious injuries. Tragically, he passed away at the Royal Sussex County Hospital in Brighton on Sunday, September 8. His next of kin have been informed. The driver of the Jeep, a 59-year-old man from Newhaven, was arrested on suspicion of causing serious injury by careless driving and was bailed, pending further enquiries.”
Police are appealing for witnesses or anyone with relevant information – which includes CCTV, doorbell, mobile phone or dashcam footage from the area at the time – to come forward.
People can report information to police at www.sussex.police.uk or by emailing [email protected] and quoting Operation Sheraton.