A 69-year-old man died following the two vehicle collision, which happened on the Glenshane Road shortly before 9pm on Wednesday.
A man and woman remain in hospital where they are being treated for injuries which are not believed to be life threatening.
Two men, aged 22 and 26, have been arrested and remain in custody helping police with their inquiries.
Part of the road remains closed at Burntollet Bridge and traffic is being diverted via the Ardmore Road.
Ulsterbus services will go through Tamnaherin, Limavady and Dungiven and Translink has warned of delays.
Police have appealed for anyone who saw a black Vauxhall Astra and a silver Vauxhall Astra being driven on the Glenshane Road in the time leading up to the crash to contact them.