Two people have died after being involved in a head-on collision on a notorious stretch of the Kings Highway near Braidwood in southern New South Wales.

The accident happened about 12.50pm, around 100 metres west of Doughboy Creek, between a Toyota Rav4 and a Holden Kingswood.

The driver of the Toyota, a 47 year old man from Surfside, was killed instantly.

The Kingswood driver - a man from Denhams Beach - survived the smash and is in a serious but stable condition in Canberra Hospital. His passenger however, a 38 year old Denhams Beach woman, died at the scene.
   
The highway was closed for seven hours between Braidwood and Bungendore yesterday afternoon while crash investigators examined the scene.

It re-opened late last night.

Police are preparing a report for the Coroner.