Police are investigating  a fatal collision which occurred in Tarneit on Sunday.

Two vehicles collided near the intersection of Boundary Road and Davis Road about 4.20pm.

The occupants of one of the vehicles, a male driver aged 40 and three female passengers aged 71, 37 and five years old, all from Tarneit, were transported to hospital with non-life threatening injuries however the 71-year-old woman later died in hospital.

A 68-year-old Newport man, who was in the second vehicle, was transported to hospital with minor injuries.

Anyone who witnessed the collision or with dash-cam footage is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.au.