Born in Kaunas, Ivanauskas started his playing career and soon became a regular with FK Žalgiris, a club that was a respected member of the old Soviet Premier Division.

In November 1990, he moved abroad to play for Austria Wien, where he was hugely successful with 52 goals in 122 games during which he was twice the leading scorer in the League.

As a result, Ivanauskas helped Austria Wien to win three successive Championships and in June 1992, the Lithuanian striker scored the only goal of the Cup Final against Admira Wacker.

In the 2004 season, Ivanauskas led FK Vėtra to its first ever Intertoto Cup third-round appearance, eliminating Tony Mowbray's revitalised Hibernian side, but resigned in August citing personal problems and that he was too occupied with his job in the national team.

Although these rumors persisted even after the sacking of managers John Robertson and George Burley, the club subsequently appointed Graham Rix as head coach.

After finishing second in the SPL and guiding to club to a Scottish Cup triumph, it was announced on 30 June 2006 that Ivanauskas had been appointed as Hearts' head coach on a permanent basis.

[8] In July 2008, Ivanauskas made a return to football and agreed to coach FK Banga Gargždai in the Lithuanian second division and led the team to its first bronze medal finish in 14 years.