Police say road closures in the area "will be in place for some time" and are advising drivers to avoid the area.
It follows the accident just before 9am which involved were a purple Peugeot and a black Audi S5.
The woman was seriously injured, but has now died, West Yorkshire Police said.
A man in his 60s was taken to hospital.
Another man has been arrested for drink driving in connection with the incident.
West Yorkshire Police is asking for witnesses with dashcam footage or any other information to contact the Major Collision Enquiry Team on 101, or Crimestoppers anonymously.