Emergency services were called at 5.17pm after the incident on the A87 at Kirkton shinty pitches between Auchtertyre and Balmacara.
The 62-year-old, a passenger of the black BMW 320d, sustained fatal injuries. Her next of kin have been notified.
The male driver, 64, also sustained serious injuries that are not thought to be life-threatening.
A diversion along the A890 was put in place while the road was closed but the A87 has since re-opened.
Portree community policing sergeant David Canning said: “Our thoughts at this time are very much with the family and friends of the victim of this collision.
“I would also extend our thanks to the public for their patience while the road has been closed.
“Our enquiries are ongoing to establish the full circumstances and I would ask anyone with information who has not yet spoken to an officer gets in touch as soon as possible.”
Anyone with information can call the road policing unit in Dingwall on 101, quoting incident 2735 of February 4.