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The crash occurred when a car participating in the race crashed into spectators at Trentagh near Kilmacrennan yesterday.
The Gardaí have stated:
"Shortly before 5pm, Emergency Services and Gardaí were alerted after a number of spectators were injured in an incident involving a participating car at Trentagh, near Kilmacrennan."
"One of the spectators, a male youth in his mid-teens, was brought by ambulance from the scene to Letterkenny University Hospital, where he was later pronounced deceased."
Two other spectators were injured in the incident and are currently hospitalised.
The incident occurred in the 12th stage of the day in what was supposed to be a 3 day event. Out of respect for the deceased the remaining events have been cancelled.
The Donegal International Rally is the largest motorsport event on the island of Ireland. Over 100,000 spectators were expected for the weekend’s event with more than 200 vehicles taking part.
A video of the incident has been circulating online. Both an Garda Síochána and Motorsport Ireland have issued statements asking for people to not share the video out of respect for the deceased and their friends and family.
This is the first spectator death at the Donegal Rally since 2012.