The woman was a rear seat passenger in a black Nissan Note that collided with a black Seat Leon at 11.30am on Saturday.
A woman aged in her 80s, who was also injured in the crash, remains in hospital in a serious condition.
Police have appealed to anyone who may have seen either vehicle being driven in the area on Saturday morning, or who witnessed the collision to contact them at Armagh on 101 quoting reference number 546 11/11/17.
