A teenage boy has died and another has allegedly returned a negative breath test after a car crashed into a tree in the New South Wales Hunter region.

Police said a white Ford Falcon sedan carrying five people, aged between 14 and 17, veered off Lemon Tree Passage Road in Salt Ash, near Port Stephens at about 10.45pm yesterday.

Despite the efforts of emergency services, a 16-year-old boy died on his way to the hospital.

The other three passengers were taken to John Hunter Hospital for a number of non-life-threatening injuries.

Police said the driver of the sedan, a 17-year-old boy, was given a roadside breath test, which allegedly returned a positive reading.

He was taken to hospital for mandatory testing.

A crime scene has been established at the crash site and an investigation has begun. 

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