The man was critically injured in the crash and was taken to hospital by helicopter yesterday morning.
Police said he was 43-year-old James William Taylor, also known as Jimmy Keane, of Wanaka.
His death has been referred to the coroner.
Police said emergency services were called about 9am. Otago Regional Rescue Helicopter pilot Graeme Gale said the man was winched off the slope of a hill with serious injuries.
Shortly after 7pm, police released a statement saying the man had died in hospital yesterday afternoon.
A police spokeswoman said she understood the parapenter was speedflying, which involves fast hill descents. No information about the man’s identity was available.