Police have confirmed one person has died after their car plunged 100 metres down a Queenstown cliff this morning, coming to rest on the edge of whitewater rapids.

Emergency services were called to SH6 at the Nevis Bluff, Gibbston, at about 10.30am, following reports of a two car crash.

It appears the two cars collided head-on with one rolling down the steep cliff down to the Kawarau River.

Cliff rescue team members abseiled down to the overturned car but high winds hampered the rescue effort. Two helicopters attempted to winch down a paramedic to the scene, with one eventually succeeding about midday.

The driver was pronounced dead at the scene.

Two people were rescued from the other wreck, a small campervan which remained on the road with a smashed front end. They were taken to hospital with injuries.

A police spokesperson said: "The circumstances of the crash remain under investigation."

One lane is now open and traffic control is in place.

RNZ reports a hazmat unit from Invercargill is dealing with an unknown substance that spilt from the vehicle over the bank, covering some firefighters.

The road was also closed further along near Arrow Junction after police and firefighters responded to reports of a car which was smoldering and about to explode.  

PHOTOS: Supplied