Emergency services were called to the B2204 in Catsfield at around 11pm last night (February 20).
Police have confirmed that the driver of a grey Seat Leon, which left the road, was pronounced dead at the scene.
Two passengers were also taken to hospital with serious injuries.
The driver of a second car, a Skoda Fabia, was arrested on suspicion of causing death by dangerous driving and taken to custody.
The man was later also arrested on suspicion of causing serious injury by dangerous driving.
The occupants in the Skoda were uninjured.
Police closed the road overnight for forensic investigation however it has since been reopened.
Detective Sergeant Suzy Marten said: “We are investigating the circumstances of the collision which happened eastbound and are appealing for witnesses or anyone with dash cam footage of the incident to come forward.
“We are also keen to hear from anyone who saw the vehicles being driven eastbound just prior to the collision.”
Anyone with information should email collision.appeal@sussex.police.uk quoting Operation Barbican.
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