The Rescue Co-ordination Centre in Fiji said the crew sent a mayday distress call near Nadi about 9pm on Sunday.
"One of the yacht's mast broke and the crew got hit by it," a spokesperson said.
Maritime New Zealand's Rescue Coordination Centre confirmed that one person died after being hit by the mast.
An Australian cruise ship, the Pacific Explorer, diverted its route to help the yacht.
But a Maritime NZ said the cruise ship was too big and could only pick up one of the survivors for medical treatment.
A spokesperson for P&O Cruises, which owns the Pacific Explorer, said it was proud of the crew for supporting the rescue.
"We'd like to take this opportunity to thank our crew, led by Captain Alan Nixon, for their immense efforts in very poor conditions, as well as our guests onboard for their understanding," they said.
The other survivor was picked up later in the day by a Fijian Navy vessel, the Savenaca.
The body of the deceased crew member is being taken to Fiji on a third ship.
Maritime NZ thanked Fiji's Rescue Coordination Centre who organised the rescue, along with the three vessels that provided aid.
"It was a challenging search and rescue operation in tough conditions," a spokesperson said.
Maritime NZ said police had been notified of the crew member's death.
