One person dead, passenger and two children taken to hospital, in crash at Parwan, west of Melbourne

A person has died in a car crash west of Melbourne, with a woman and two children taken to hospital.

All four people were inside a vehicle travelling on Nerowie Road in Parwan on Sunday about 10.10am when it crashed with another car.

The driver of the vehicle died at the scene.

They have yet to be formally identified.

Their female passenger was taken to hospital with life-threatening injuries.

Two children travelling in the back seat of the vehicle were also taken to hospital with non-life-threatening injuries.

The driver, and sole occupant, of the second vehicle has been arrested.

They are assisting police with their inquiries.

An investigation is ongoing.