Police believe two utes travelling in opposite directions along the Calder Highway, about two kilometres north of Adams Road, collided head-on shortly after 2pm on Friday.

One of the vehicles came off the road and caught fire following the collision.

The driver, who was the single occupant of the vehicle, died at the scene.

The deceased is yet to be formally identified.

A male and female, who were the two occupants of the other vehicle, were treated on scene and conveyed to hospital with non-life threatening injuries.

The Calder Highway between Yeungroon-Woosang and Yeungroon roads is blocked to traffic in both directions and diversions are in place.

The exact circumstances surrounding the crash are yet to be determined and the investigation is ongoing.

Police have urged anyone who witnessed the incident to call Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.au