The pensioner died after the Skoda Fabia she was driving was in collision with a silver Renault Scenic at the junction of Wentworth Way and Northfield Road, in Harborne, on Thursday.
A 36-year-old man was subsequently arrested on suspicion of drink-driving and driving while disqualified, and has been released from custody while officers from West Midlands Police carry out an investigation into the crash.
Officers have said they are speaking to witnesses and are examining CCTV footage to establish what happened.
A spokesman for West Midlands Police said: "We're investigating after a 76-year-old woman died in a crash on Northfield Road, Harborne Thursday afternoon.
"She was driving a Skoda Fabia which was involved in a collision with a silver Renault Scenic at the junction with Wentworth Way at 4.15pm.
"A 36-year-old man was arrested on suspicion of drink-driving and driving while disqualified.
"He has been released from custody while we carry out a more detailed investigation.
"Our officers have spoken to witnesses and are looking at CCTV as the investigation to establish exactly what happened.
"Our thoughts are with the woman’s family and friends at this sad time. They are being supported by specialist officers.
"If you saw what happened or recorded the incident on your phone, CCTV or dashcam, please speak to us.
"The easiest way to do that is to get in touch via live chat at west-midlands.police.uk or call 101 anytime.
"To remain 100% anonymous please call Crimestoppers on 0800 555 111. Please quote log number 3046 of 22/07/21."