A white Ford Fiesta and a black Volkswagen Tiguan were involved in the crash on the A1(M) near Darlington, between Junctions 57 and 58, shortly after 8.30pm.
Police and paramedics attended but a woman in her 80s from County Durham, who was a passenger in the Ford Fiesta, tragically died at the scene.
The driver, a man in his 80s, had been taken to hospital where he remains in a serious but stable condition.
Police have thanked motorists who stopped at the scene to offer assistance.
The driver of the Volkswagen, a man in his twenties, was arrested on suspicion of causing death by dangerous driving.
He has since been released under investigation while investigations continue.
Crash investigators attended overnight with the motorway closed in both directions until early on Boxing Day while recovery and barrier repairs took place.
The road has since reopened but one lane remains closed
Officers are now appealing for information and anyone with dashcam footage to come forward to assist them.
A North Yorkshire Police spokesperson said: “We’re appealing for witnesses and dashcam footage of the incident, which happened shortly after 8.30pm yesterday on the northbound carriageway between J57 (A66(M) junction) and J58 (Merrybent).
“We would like to hear from anyone who has not yet spoken to us who has dashcam footage or information about the incident, including anyone who witnessed the crash or saw either vehicle prior to the collision.
“We would like to thank the members of the public who assisted at the scene.
Recommended reading:
Get more from The Northern Echo with a digital subscription. As we get ready for 2025, get access for 12 months for just £25 with our latest offer. Click here.
“If you have information, please email mcit@northyorkshire.police.uk or jack.dodsworth@northyorkshire.police.uk If you don’t have access to email, please contact us by calling 101 and select option 1 quoting reference number 12240235160.”
A North East Ambulance Service spokesperson added: “We received a call at 20.38h on 25 December to a road traffic collision on the A1 motorway between junctions 57 and 58.
“We assisted Yorkshire Ambulance Service, who also responded to this incident, dispatching a paramedic ambulance, a doctor and a clinical team leader. All casualties were treated and conveyed by Yorkshire Ambulance Service.”
