The Dundee-born player was best-known for his time with Leeds United and Scotland during the late 1960s and early 1970s.
He won 21 caps for Scotland and scored four goals, having played in all three of the team’s matches at the 1974 FIFA World Cup.
The attacking midfielder became the youngest player to represent Leeds United at the age of 15 years and 289 days.
He netted 238 goals in 705 appearances during two spells at Elland Road.
His death was announced in a statement on the Premier League club's official website.
It read: “It is with great sadness Leeds United has learned of the passing of club legend Peter Lorimer this morning at the age of 74 following a long-term illness.
“Peter made a huge 705 appearances for the Whites over two spells and is the club's record goalscorer, having netted 238 times in all competitions.”
Lorimer came to regular prominence in the 1965–66 season, making 34 League Championship appearances and scoring 19 goals, more than any other player at Leeds United managed that season
After retiring as a player, Lorimer became a director on the board at Leeds, provided match commentary on BBC Radio Leeds and Yorkshire Radio, and wrote a regular column in the Yorkshire Evening Post.
He had also been running a pub in the Holbeck area of Leeds.
Last month it was announced that he had been placed under hospice care due to a long-term illness.