Jodie Nieman was at the Space nightclub in the Playa d'en Bossa resort on the island's southeast coast when she fell ill.
Local police said they could not confirm reports she had taken ecstasy, as they were waiting for the results of a post-mortem examination.
An ambulance was called at 4.30am on Wednesday morning and Ms Nieman was taken to the Can Misses hospital, suffering from a heart attack, a hospital spokesman said.
"Ambulance staff tried to resuscitate her and when she arrived at hospital, medics continued to try and save her but it was not possible and she died at 5am," he said.
Ms Nieman had been staying in an apartment on the resort and was out with a group of female friends.
They had taken ecstasy, the hospital spokesman said, but he could not confirm whether the woman who died had taken the drug as well.
A spokeswoman for the Civil Guard in Majorca said: "Police are investigating the death of a British woman from Croydon (south London). At the moment we cannot confirm the cause of death.
"Results of the post-mortem examination are expected later today or tomorrow."
A Foreign Office spokeswoman said: "We are aware of the death of a British national in Ibiza in the early hours of this morning and are providing consular assistance to the family."
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