Officers are appealing for witnesses following crash at 3.50pm on Monday.
It invovled a red Ford Focus and a blue Jaguar I-Pace.
The 26-year-old woman, the driver of the Ford Focus, was pronounced dead at the scene.
Her next of kin have been informed.
The three people travelling in the Jaguar were taken to Ninewells Hospital in Dundee for treatment for minor injuries.
Sergeant Steve Livesey, Tayside Road Policing Unit, said: “Our enquiries into this incident are continuing to establish the full circumstances of what happened and our thoughts are with the family and friends of the female driver.
“The road remains closed to allow officers to investigate.
“I would appeal to anyone who saw what happened, or has relevant dash cam footage, to please get in touch.”
Anyone with information is urged to contact Police Scotland by calling 101 and quoting reference 2262 of Monday, 26 September, 2022.