The incident began when police were first called to Dohles Rocks Road in Griffin at 9.30am after a woman reported that her Audi had been stolen at gunpoint.
A short time later, the allegedly stolen car drove through an intersection at McClintock Drive in Murrumba Downs and collided with a Toyota sedan that was turning right across traffic, according to police.
In the crash, the Audi also hit an unmarked police car that was parked near the intersection and had been deployed to look for the stolen car.
Two officers inside the police car were injured and were taken to hospital for treatment.
A 69-year-old woman was trapped inside the Toyota sedan that collided with the Audi.
Police and paramedics attempted to perform CPR but she could not be resuscitated and died at the scene.
Acting Chief Superintendant Adam Guild extended his condolences to the family of the deceased woman, and said her death occurred under “tragic circumstances”.
Guild said that police found what they believe to be a firearm at the scene of the crash.
A 16-year-old boy was arrested at the scene and is now under police guard in hospital.
He sustained non-life-threatening injuries and will be questioned later by police later.
No charges have been laid.
Police remain at the scene with forensic investigators and detectives attempting to uncover the exact circumstances of the crash.
Guild confirmed that the teenager was known to police, and has matters before the court that he could not comment on.
Any witnesses to the crash have been asked to come forward.