Two other children are still in critical condition after suffering burns in the fire
The mishap on the Dhaka-Sylhet Highway took place at the Sadar Upazila on Friday morning, Sadar Model Police Station OC Abul Kashem said.
He said one of the drivers Farid Uddin, 22, was killed on the spot.
Three others, injured in the accident, are being treated at local hospitals, he added.
Police said they had seized both vehicles.