Detectives are investigating a link between a car crash on the Pacific Highway and the discovery of a body following a house fire in the Hunter Valley region.

Emergency services were called to a home on Rosemount Drive at Raymond Terrace about 12.30am on Saturday after reports of an explosion and a fire.

Police said the body of 76-year-old resident Jan Garrett was found in the wreckage.

“She’s a beautiful person,” said stunned neighbour Peter Kafer.

“She’s a little woman with emphysema, always in and out of hospital.”

Residents who spoke to the ABC said they saw the other occupant of the house, a 69-year-old man, drive off in a Nissan X-Trail after the fire erupted, engulfing the home in what neighbours said was almost an explosion of flames.

Police said the same man, believed to be the dead woman’s carer, was involved in a head-on crash with a truck an hour later while travelling the wrong way up the Pacific Highway near Bulladelah,  60km north.

Investigators have concluded the crash was deliberate

The man is now under police guard in hospital with serious but non life-threatening injuries.

Acting Superintendent Al Janson said the family of the woman had been notified about the incident.

“They’re obviously fairly upset and shocked,” Superintendent Janson said on Saturday morning.

The cause of the fire has yet to be determined.

Police are investigating whether the incidents are linked and have urged anyone with information about either to contact them.

-with wires