UPDATED, 1pm: The Pacific Highway has been re-opened.
INITIAL REPORT, 11am:
TWO people has survived a fiery head-on collision on the Pacific Highway near Grafton on Sunday morning.
At about 10am, police attempted to stop a Nissan X-Trail travelling southbound on the highway at Ulmarra.
After the Queensland driver in his 20s failed to stop, police initiated a pursuit after the vehicle.
That vehicle crossed over to the northbound lanes and hit a oncoming 4WD, being driven by a mid north coast man in his 60s.
The vehicles caught alight after impact, with plumes of black smoke visible to motorists in the area.
The drivers had to be extricated from the vehicles and rushed to Coffs Harbour Hospital, where the younger driver remains on police guard.
Both drivers suffered non life-threatening injuries.
Police are still making enquiries into the incident and no charges have been laid.
The Pacific Highway is closed in both directions.