"It is with great sadness that it has been announced today that Bobby Robson has lost his long and courageous battle with cancer," a statement issued on behalf of Robson's family said.
"He died very peacefully this morning at his home in County Durham with his wife and family beside him."
Robson, who has battled against cancer for the past 15 years, enjoyed a highly-successful 36-year coaching career.
He is best known for leading England to the 1990 World Cup semi-final, where they were defeated by eventual winners West Germany in a penalty shoot-out.
On the club level, Robson led Ipswich town to the 1978 FA Cup and UEFA Cup glory in 1981.
"As a football manager he is one of the greatest of all time. He didn’t just taste success here in Britain, he won trophies right across Europe. Quite simply, his record was phenomenal," Scotland manager George Burley, who played under Robson at Ipswich, said.
Robson also helped Dutch side PSV Eindhoven win the Eredivisie title in 1992 and guided Spanish giants Barcelona to the European Cup Winners' Cup, Spanish Cup and Spanish Super Cup titles.
His last managerial job was with Newcastle United, the club he guided to three top-five Premier League finishes. The Magpies also played in the Champions League under his guidance.
"The world, not just the football world, will miss him. Let’s hope it won’t be long before another like him turns up because we could never get enough of them," Manchester United manager Alex Ferguson said.