The 45-year-old escaped with cuts and bruises after the incident at a hotel building site on the corner of Oxford Road and Hulme Street in Manchester.
The 50ft crane fell on its side, with the arm coming to rest in the River Medlock.
The driver was rescued from his cab, hanging over a 10ft drop, by workers who reached him by ladder.
Emergency services were called to the scene, the former Spar shop opposite the BBC, at around 11.15am yesterday.
Eye-witness Martin Connolly, 41, from Ashton-under-Lyne, said: "I saw the reflection of a yellow streak going down in windows of the building opposite the site.
"There was a huge bang, really loud. I went over and saw the cab driver against the shattered window of the cab.
"It took the other workers about five minutes to get him out but he didn't appear to be injured. He was lucky.
"The arm of the crane went in the river, only a few feet from the bar next door."
Police and the Health and Safety Executive have launched an investigation.
A spokesman for Russells Construction said: "Fortunately, no injuries were sustained. We will be co-operating fully with the investigation and conducting our own internal investigation."
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citycentre, manchester (25/03/2009 at 08:55)
yes, lucky that after previous incidents and thier investigations safety features were enforced on crane operators to improve the chances of the drivers being unhurt should this type of thing happen
Casshern, City Center (26/03/2009 at 21:21)