The incident occurred in the governorate of Damietta. The villagers killed a carpenter they accused of killing a minibus driver, according to the official.
It was the latest example of citizens taking the law into their own hands after a breakdown in security more than two years after the ouster of longtime President Hosni Mubarak.
The man killed had allegedly been fighting over financial issues with the minibus driver, according to police who heard the account from the driver's brother.