The driver of one of the cars, a woman aged in her 80s, was pronounced dead at the scene. Her body has been removed to the mortuary at Portlaoise Hospital.
Gardaí are appealing for any witnesses to this collision to come forward and request road users with camera footage to share this information.
The collision took place at around 4.15pm at Junction 21 of the M7 eastbound at Borris-in-Ossory and involved two cars.
The driver of the other car, a woman aged in her 50s, was taken to Midlands Regional Hospital Tullamore to be treated for injuries believed to be serious.
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