The two cars collided at the junction between the A5 and A4640 in the Redhill area of the town at around 9am on Thursday.
West Midlands Ambulance service sent two ambulance to the scene.
A spokesperson said: "A woman had to freed from her vehicle by the fire service and was treated for potentially serious injuries by ambulance staff before being taken to Royal Shrewsbury Hospital.
"A second patient was assessed and discharged at the scene."
Shropshire Fire & Rescue Service say they received a call to a collision on the A5 at Redhill at 9:07am.
Two fire appliances were mobilised from Telford Central fire station where crews used cutters and spreaders to deal with the incident.
Two ambulances have been sent to the scene, where medical teams are assessing two patients.
One witness told the Shropshire Star: "It looks pretty serious. All the emergency services are there, cutting people out and it looks bad."