The 38-year-old confused the left and right lanes on the main road near Kaltenborn in Rhineland-Palatinate, police said on Friday morning.
As he accelerated along the B412 towards the famous Nürburgring racing track, another driver encountered him heading in the other direction.
Although the other driver tried to evade the oncoming car, the two smashed into one another head-on.
Firefighters freed the British man from the wreck and he was flown to hospital with life-threatening injuries. The other driver was only slightly hurt but was also brought to hospital.
The Nürburgring - nicknamed the "Green Hell" - currently has several events planned for the weekend which started on Thursday for the public holiday, including a Drift Cup, "superbike" event and tourist driving days.
"The Nürburgring is known internationally. We've got visitors from all over Europe this weekend and an increased number of accidents," a local police spokesman told The Local.
He added that drivers from the UK and Asian countries that drive on the left are more often involved in accidents caused by confusing lanes.
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