Hyundai Motorsport confirmed the news in a statement this afternoon.
Breen's co-driver, James Fulton, was unharmed in the incident that occurred shortly after midday local time.
The 33-year-old from Waterford collected a second place finish in Sweden in February in his first World Rally Championship start of the season.
Tributes have been pouring in for the son of well known former rally driver Ray Breen.
In a post on Twitter, the World Rally Championship said everyone is "shocked and saddened to learn of Craig Breen's passing. Our thoughts and condolences are with the family and friends of Craig at this incredibly sad time."
We are deeply saddened to hear of the passing of rally driver, Craig Breen, earlier today.
Our thoughts are with Craig's family, friends, colleagues and the rallying community. pic.twitter.com/xDGA0IHPEc— Silverstone (@SilverstoneUK) April 13, 2023