A police spokeswoman said: “At 7.30am two vehicles, a northbound Citroen C1 and a VW Tiguan travelling south, were involved in a road traffic collision on the A816 near to Oude Dam.
“The 53-year-old driver of the Citroen was treated by paramedics at the scene but has since died.
“The 26-year-old driver of the Tiguan has been taken by ambulance to hospital in Oban where their injuries are not thought to be serious.”
The A816 Kilmelford to Kilninver remains closed to allow officers to carry out investigations.
Local diversions are in place.
One person dies after two-vehicle road traffic collision on Argyll road