The Newcastle Inner City Bypass will be closed for some time after a two-car crash at Maitland Road, Sandgate.
Emergency services were called to the scene around 5:45an and arrived to find three vehicles had crashed, with a van found lying on its side.
Two men have been taken to hospital with injuries.
Fire crews worked for an hour to clean up a large oil spill and crash investigators remain on scene.
As of 7:45am, one of the two northbound lanes of Maitland Road is also closed.
Northbound traffic on the Newcastle Inner City Bypass is being diverted via Sandgate Road, Wallsend Road and Maitland Road.
Northbound motorists can also consider exiting the Bypass at University Drive.
Traffic is very heavy, so motorists are advised to allow plenty of extra travel time and expect delays.
Emergency services and traffic crews remain on site.
Image credit: Jessica Rouse