Margaret Innes, from Cullen, died from her injuries today.
Emergency crews were called to the B9022 Portsoy to Huntly road, near Mill of Durn, at 3.15pm on Thursday following a head-on collision between a grey Citroen and silver Ford Fiesta.
Tonight, police confirmed that the Citreon C3’s passenger Margaret Innes, 83, died of her injuries.
The driver, an 82-year-old man, remains in hospital in a serious condition.
Both were initially taken to Dr Gray’s Hospital in Elgin by ambulance before being transferred to Aberdeen Royal Infirmary (ARI).
The 32-year-old woman behind the wheel of the Ford was also seriously injured and remains at ARI.
On Thursday, the road was closed for several hours to allow crash scene investigators to examine the road and wreckage and piece together the circumstances.
Sergeant Colin Matheson said, “Our thoughts are with the family and friends of Mrs Innes and the other people involved in this collision at this very sad time.
“Enquiries into the incident continue and I would urge anyone with information who has not yet spoken to the police to get in touch by calling 101.”