The incident happened around 8:30 p.m. on Weston Road, south of Sheppard Avenue West.
Paramedics arrived and performed CPR on one patient, but he succumbed to his injuries at the scene, according to police.
The other driver was taken by ambulance to hospital with serious injuries.  There were no other passengers in either car, police said.
Toronto police tweeted that one of the two vehicles involved ended up hitting a house in the area.  However, officers at the scene later said that was not the case.
“There were some initial reports that a house was damaged.  This is not right.  There is no damage to any of the homes in the area,” duty inspector Lori Cranenburg told reporters.
It is not yet clear how exactly the collision occurred.
“Traffic Services and the collision reconstruction team are on scene,” Cranenburg said.  “The positioning of the vehicles – it looks like one is resting at the end of the road, which led to confusion that maybe a house was hit.”
Officers are currently canvassing the area to speak to witnesses and gather surveillance footage.
Kranenburg said it’s possible the weather was a factor.
“It has been raining hard all night.  So I can’t say for sure if the weather was a factor, but that’s something that will be looked at as part of the investigation,” he said.
Investigators are asking anyone with information about the collision to contact police.
Police said motorists should expect extended road closures in the area as officers investigate the incident.