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The driver who was killed in a crash at the annual Donegal International Rally was Manus Kelly.

Mr Kelly, a married father of five in his 40s, was a three-time winner of the competition and also a newly-elected Fianna Fáil councillor in Donegal.

His co-driver, Donall Barrett, was injured in the incident, which happened at about 12:20 BST on Sunday.

He was taken to Letterkenny University Hospital but his injuries are not thought to be life threatening.

It is understood the crash occurred at the Fanad Head loop on the final day of the three-day event.

Mr Kelly, known as 'Mandy', was a businessman in Letterkenny in County Donegal.

Fianna Fáil leader Micheál Martin offered his condolences to Mr Kelly's wife and children saying that he had "just embarked on a promising career in local politics".

"As three-time consecutive and reigning champion of the Donegal International Rally, Manus's racing talent was limitless.

"He was widely respected and loved by all of the rally community here in Ireland.

"It was obvious throughout his recent election campaign that he was passionate and entirely committed to serving the people of the Letterkenny electoral area which he cherished."

Motorsport Ireland said an investigation is now under way into the cause of the incident.

"The entire motorsport community extends its fullest sympathy to the family of the bereaved," a spokesperson for Motorsport Ireland added.

The Donegal International Rally is a three-day international event and attracts the sport's big names and up to 70,000 spectators every year.

The final stages of the rally have been cancelled.