PSNI Inspector Cherith Adair, from the Collision Investigation Unit, said officers received a report shortly before 2am that a grey Volkwagen Golf had been involved in a collision on the Kilkeel Road.
Officers and the emergency services attended the scene.
“The front seat passenger of the car was sadly pronounced dead at the scene whilst the driver, a man aged 18, was arrested and remains in custody at this time,” Ms Adair said.
“The Kilkeel Road remains closed as an examination of the scene continues.
“Collision Investigation Unit detectives are investigating the circumstances of the collision, and would like to hear from witnesses or anyone who may have captured dashcam or other footage which could assist with our inquiries.”
Anyone with information has been asked to call 101.
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