We propose a new critical void volume fraction (fc) criterion that identifies the onset of void coalescence based on the stress state of the material as compared to the definition of the phenomenological criterion by Tvergaard and Needleman , where void coalescence is predicted based merely on a constant value for critical void volume fraction. The new fc criterion is obtained using the finite element analysis of the unit cell model of clustered voids. Validation of this new criterion is done by implementing the new coalescence criterion into the Gurson-Tvergaard-Needleman (GTN) [1-3] model and simulating the ductile fracture experiment of a series of angularly notched sheet samples of dual phase (DP), advanced high strength steels (AHSS). A methodology has been devised to construct a stress triaxiality-based void coalescence criterion. Validation of the methodology has been performed using tensile tests of angularly notched samples of DP490 AHSS. Experimental data is compared with FE simulations in order to verify the dependency of void coalescence on stress triaxiality.