Police will prepare a brief for the Coroner following a fatal collision near KIllawarra on Friday.
About 5.45pm, emergency services responded to reports of a collision between a Chery sedan and a Holden Astra on Gloucestor Road, Killawarra, west of Wingham.
The 19-year-old female driver of the Holden Astra was taken by paramedics to Manning Rural Referral Hospital, however she died.
The female driver of the Chery, aged 18, was taken to John Hunter Hospital after being freed from her vehicle.
The woman suffered several fractures as well as abdominal injuries and remains in a serious, but stable condition.
Police are continuing their investigation into the incident and are appealing to anyone who may have information about the incident or the circumstances leading up to the incident to come forward.