An accident on the Princes Highway near Orbost last Thursday afternoon has claimed the lives of two locals.

The head-on crash happened at WR Creek, near Waygara, at about 2.15pm when a red sedan travelling east along the highway collided head-on with a silver 4WD travelling in the opposite direction.

Police say the 80-year-old female driver of the sedan, from Cann River, died instantly while the 87-year-old male driver of the 4WD passed away about two hours later on extraction from the wreckage.

His wife, from Marlo, was airlifted to the Royal Melbourne Hospital (RMH) with life threatening injuries.

RMH on Monday said her condition had stabilised.

The accident happened during heavy rainfall with road conditions described as slippery.

Police say it appears the driver of the sedan drifted across a straight section of road and struck the 4WD.

Road traffic investigators estimate the vehicles were both travelling at 100km/h when they slammed into one another.

The road was closed in both directions for more than five hours as emergency crews worked to free the trapped occupants from their vehicles.

Police described the extractions as lengthy with both vehicles being rendered write-offs.

East bound traffic was diverted along Simpsons Creek Road while westbound traffic was directed along the Orbost-Buchan Road.

Police say the accident is a timely reminder to drive to the conditions.

Acting Senior Sergeant Andrews Bills, of Bairnsdale Police, said motorists need to take “considerable care and slow down” when weather conditions change.

As of Thursday, 190 lives have been lost on Victorian roads this year compared to 219 in 2017.