Lancashire Police say they were called out to reports of a collision at around 10.15pm on Sunday February 28.
It is understood that the Toyota C-HR the man was driving collided with a tree near to the junction of Waitholme Lane.
A police spokesperson said: "The driver, a 58-year-old man from Lancaster was sadly pronounced dead at the scene.
"His family have been informed.
"An investigation into the cause of the collision is underway.
"Anyone with information is asked to call us on 101 quoting incident reference 1659 of February 28th."
The road from the junction of Nineteen Acre Lane was closed for several hours overnight whilst investigations took place.