Jimmy Girvan has been killed on the Colin McRae Forest Stages car rally in Aberfeldy, Perthshire.
Rally organisers cancelled the event straight after the accident as a mark of respect.
The former Scottish Rally Champion's Subaru Impreza collided with boulders and then crashed into trees at the Griffin section of the course.
Mr Girvan's navigator, Mike Ramsay, was cut free from the vehicle, but he was not seriously hurt.
The rally is held in memory of world championship winning rally driver McRae who died in a helicopter crash three years ago.
The section of road where the collision took place has been closed off to allow Tayside Police crash investigators to examine the scene and safely remove the rally car.
Tayside Police's Ch Insp Sandy Bowman said: ''Our thoughts are with Jimmy's family, friends and wider motor sport community at this very sad time.''