The elderly man died after the Ford Falcon he was driving and a white Mitsubishi 4WD travelling south on the highway collided shortly after 5pm.

The accident occurred on the corner of the highway and Dorothy St. The force of the impact pushed the sedan into a ditch on the Betts Lane corner.

The female passenger was taken to hospital by ambulance. She was placed on a stretcher and a brace put around her neck.

Tamworth police Sergeant Barry McMahon said it was believed the Falcon was waiting to turn right onto the highway from Dorothy St when it and the Mitsubishi collided.

Emergency services personnel were still trying to free the body of the driver more than an hour after the accident.

No further information was available last night.