The occupants of a blue Ford Mondeo, a man and a woman, both 19, were pronounced dead at the scene.
The other vehicle, a white Citroen C3, left the scene and was later traced and the driver, a 26 yr old local man, was arrested for causing death by dangerous driving, providing a positive breath test and leaving the scene of a collision.
Police have traced the immediate family of the victims and broken this desperately sad news to them.
Anyone who was on the by pass between the Carholme and Skellingthorpe roundabouts between about 00:30 and 00:50 this morning and saw either the white Citroen C3 or the blue Mondeo estate before the collision or saw the collision itself is asked to contact police on 101.
The police investigation at the scene has been completed and the road is now re-open.