Wendy Allan, 19, from Bishopmill in Elgin, a front- seat passenger in one of the vehicles, died at the scene.
The accident happened on the A96 Inverurie to Huntly road on the crawler lane stretch near Wedderburn, Aberdeenshire, at about 5.40pm on Friday.
The 21-year-old male driver of the vehicle in which the woman died, also from Elgin, was taken to Aberdeen Royal Infirmary with serious injuries. His condition is described as stable.
The 35-year-old female driver of the other car has now been released from hospital.
The road was closed for about eight hours while police carried out investigations at the scene.
Grampian Police appealed for information from any witnesses.