Police and emergency services attended the scene of the crash on the D'Aguilar Highway in Woodford, north of Brisbane, at 6.10am on Tuesday after a stolen Isuzu utility collided head-on with an orange Toyota Corolla.
The 60-year-old woman from Caboolture South who was driving the Corolla was declared dead at the scene.
The 31-year-old driver of the ute, which had been reported stolen from an address in Morayfield about 3.45am, allegedly fled the crash scene on foot.
He was taken to hospital with minor injuries after being found hiding in the toilet block of a school. Charges are yet to be laid.
Detective Acting Inspector Lisa Elkins said some staff, including cleaners and teachers, were at the school at the time but there were no students on-site.
The area was temporarily locked down until the man was found after first responders tracked him there.
The man was known to police, who ruled out the possibility more than one person was involved in the theft of the vehicle.
"We have witness accounts to suggest he was definitely driving dangerously," Det Insp Elkins said.
Flowers have already been laid at the scene of the crash, which caused the highway to be temporarily closed.
"It's very tragic circumstances to be in the wrong place at the wrong time," Det Insp Elkins said.
"The police are supporting (the family) and we can only give them our best."
Anyone with information about the incident or relevant dashcam footage is urged to contact police.