According to the newspaper Delfi, the fatal accident occurred when a rally car drove off the road in a sharp curve and straight into the spectator area.
The police confirm that one person has died and 14 people have been injured.
The rally competition in Utena was interrupted immediately after the accident on Friday evening and later it was also decided that it would not be resumed on Saturday.
"The entire rally community and organizers express their deepest condolences to the victims and their relatives during this tragic event," writes the organizer on its website.
Lithuanian police have, together with the country's motorsport association, launched an investigation into the accident, writes Delfi.