About 11.30am officers attached to Orana Mid-Western Police District were called to Gollan Road in Gollan, about 60km east of Dubbo, following reports a Holden and a Ford had collided.

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The female driver and sole occupant of the Holden died at the scene.

The driver of the Ford, a man aged in his 40s, was treated at the scene by NSW Ambulance paramedics before being airlifted to Dubbo Hospital in a serious condition.

A crime scene was established, and the Crash Investigation Unit began an investigation.

Inquiries are continuing and a report will be prepared for the information of the coroner.

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