A FATAL petrol tanker crash that shut down the Princes Highway in NSW has claimed two lives.

The tanker and a ute collided on the highway south of Berry, in southern NSW, just after 1am (AEDT) this morning.

The male ute driver, who has not yet been identified, died at the scene.

Police say the 59-year-old male truck driver was rushed to St George Hospital but died later.

One of the petrol tanks was ruptured in the crash, causing ethanol to leak out on to the road.

Hazmat crews are mopping up the spill and an exclusion zone is still in place.

The Princes Highway is closed in both directions between Bomaderry and Gerringong and the NSW Transport Management Centre is warning of delays.

Police from Shoalhaven Local Area Command will establish and process a crime scene once the area is deemed safe and have urged witnesses to come forward.

The road is expected to stay closed until noon.