A 68-year-old NSW man has been killed in a crash on the second last day of the Targa Tasmania car rally.

Long-time Targa competitor Shane Navin died after he crashed his 1979 Mazda RX-7 at Double Barrel Creek on the Mount Arrowsmith stage of the race, on Friday morning.

The accident occurred about 11am on Friday on the Lyell Highway near Double Barrel Creek, between Queenstown and Derwent Bridge.

Tasmania Police confirmed Mr Navin’s death in a statement on Facebook. Mr Navin’s co-driver, Glenn Evans, was uninjured in the crash.

In a statement on Friday afternoon afternoon, Targa Australia CEO, Mark Perry, said Navin was “much-loved”.

“This is a very sad time for the Targa community. Shane was a much loved and admired member of our Targa family,” Mr Perry said.

“We send our heartfelt condolences to Shane’s family and friends on their loss.”

Emergency services have closed the road until further notice and the crash is being investigated by police.

The staged Targa event, which dates back to 1992, involves purpose-built rally cars competing on sealed roads.

Friday was the second-last day of the 2000-kilometre rally, which started on April 19.

There have been two previous fatalities in the event.

In 1996, a Melbourne man who was a navigator died while a 71 NSW man died in a crash in 2013.

-with agencies