The incident happened at approximately 5:05 Thursday morning on the northbound lanes of the Dupont Highway (Route 13).
The victim was crossing the street in a westbound direction when she struck.
The woman, identified as Kelly D. Diggins, 38, of new Castle, was rushed to Christiana Hospital in critical condition, having suffered multiple blunt force injuries.
However, she died from her injuries on Thursday afternoon.
Witnesses tell police that Diggins was struck by a white vehicle that looked like a taxi cab, but not one operated by a recognized company.
Operating the vehicle was a man described as having a light brown complexion and a beard, possibly wearing a turban.
According to witnesses there was little damage to the striking vehicle except for a broken windshield wiper. Police say there was no evidence from the striking vehicle left at the scene.
The investigation continues.