Police were called to the B3001 Farnham Road between Seale Road and Fulbrook Lane at around 3.40pm on May 31, after a collision between a Ford Fiesta and a Mitsubishi Outlander.
Two people were injured, a woman in her 70s and a man in his 30s. Both were taken to hospital.
However, police confirmed on Tuesday that the woman passed away due to her injuries the day after the crash, last Saturday (June 1).
The man has since been released from hospital.
A police spokesman added: "An investigation is currently underway into the circumstances of the collision. No arrests have been made at this time.
"We are appealing for anyone who saw what happened or has dashcam footage or CCTV of the incident to come forward. Please call 101 quoting PR/ P19121507 with any information.