The 33-year-old was the driver of a Kia that was in collision with a BMW 118 on Denby Dale Road in Calder Grove just before 7am on Saturday.
She was taken to hospital for treatment but died last night.
The driver of the BMW, a 23-year-old man, was also seriously injured and remains in hospital.
Police are appealing for witnesses to the crash, which happened near Denby Dale Road’s junction with Branch Road.
Det Insp Paul Conroy, from West Yorkshire Police’s Major Collision and Enquiry Team, said: “We are continuing enquiries into what has now become a fatal road traffic collision and are appealing for information from anyone who saw what took place.
“We are particularly keen to speak with anyone who saw the manner in which the BMW or Kia were being driven in the moments leading up to the collision to come forward.”
Anyone with information is asked to ring the Major Collision and Enquiry Team using West Yorkshire Police’s 101 number.