What is the current hypothesis on how the earth was formed?

Approximately 4.6 billion years ago, the solar system was a cloud of dust and gas known as a solar nebula. Gravity collapsed the material in on itself as it began to spin, forming the sun in the center of the nebula.

With the rise of the sun, the remaining material began to clump up. Small particles drew together, bound by the force of gravity, into larger particles. The solar wind swept away lighter elements, such as hydrogen and helium, from the closer regions, leaving only heavy, rocky materials to create smaller terrestrial worlds like Earth.

God did not create earth, it has been proven. 

Material from space came together and form a planet called earth.