The multi-vehicle incident occurred on Old South Coast Road at Carunna, which is 5 kilometres from Narooma.

NSW police said they received a call relating to the incident about 4.40pm on Friday, and they believe up to three vehicles were involved.

Police were told a northbound white Audi Q3 and a southbound silver Toyota Camry collided, causing a white Volkswagen station wagon to also crash.

The driver of the Camry was a 39-year-old woman from West Sydney, who died at the scene.

The passengers in the Camry were two brothers aged 18 and 15 and they were airlifted to Westmead Hospital and Westmead Children's Hospital respectively.

The eldest was in a serious condition and the youngest was in a critical condition.

The driver of the Audi, a 40-year-old man from South Australia, and the passenger, a 31-year-old woman, were taken to Moruya Hospital before being airlifted to St George Hospital, with the woman stable and the man serious but stable.

The five occupants of the Volkswagen from Victoria were uninjured; however, the driver, a 34-year-old woman, was conveyed to Moruya Hospital for observation.

By 7pm, the crash had been cleared.

Officers from South Coast Police District established a crime scene, which will be examined by specialist police from the Crash Investigation Unit.

An investigation into the circumstances surrounding the crash is underway, and anyone who may have dashcam footage or information that can assist is urged to contact Crime Stoppers on 1800 333 000.

A report will be prepared for the information of the Coroner.

Anyone with information about this incident is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au.

"An investigation into the circumstances surrounding the crash is underway, and anyone who may have dashcam footage or information that can assist is urged to contact Crime Stoppers on 1800 333 000."

For the latest traffic information, visit www.livetraffic.com or download the Live Traffic NSW app.