A 39-year-old man from Donington has been arrested on suspicion of causing death by dangerous driving after being involved in a fatal head-on collision on the A16 Crowland bypass.
Emergency services were called to the junction with the B1166 at 7.55pm last night (Tuesday) but a 52-year-old Swineshead man, who was a rear seat passenger in a blue Volkswagen Polo, died at the scene.
A 51-year-old man from Stickney who was driving the Polo was taken to hospital in Peterborough with fracture injuries.
The Donington man who was arrested was driving a grey Volvo XC90 and has been released on police bail until January 11.
There were three passengers in the Volvo, who suffered less serious injuries and received treatment at Peterborough Hospital. All the details of the passengers are not yet confirmed but two were men from Pinchbeck, aged 17 and 37.
The road was closed until 5.30am this morning (Wednesday).
Anyone who witnessed the collision or who saw either vehicles prior to the incident should call the collision hotline 01522 558855.