A 47-year-old woman died in a two-car collision in Yanderra in the Southern Highlands on Saturday.
At about 6pm, emergency services were called to Old Remembrance Road, following reports of a two-vehicle crash.
Police were told a Mercedes coupe driven by a 49-year-old man was travelling north when it collided with a southbound Holden driven by a 47-year-old woman.
The Holden driver died at the scene.
The Mercedes driver suffered back injuries and was taken to Liverpool Hospital in a stable condition where he also underwent mandatory testing.
Old Remembrance Road remained closed for several hours while Metropolitan Crash Investigation Unit officers examined the scene. Camden Local Area Command officers also attended and seized the Mercedes for mechanical examination.
Investigations continue into the cause of the crash and police will prepare a report for the information of the coroner outlining the full circumstances surrounding the woman's death.
Police urge anyone with information about this incident to call Crime Stoppers on 1800 333 000 or use the Crime Stoppers online reporting page.