Wilkins, who won 84 England caps, had been treated in St George’s Hospital in Tooting, south-west London since Friday.
St George’s Hospital confirmed Wilkins had died on Wednesday morning, and issued a statement on behalf of the family.
“It is with great sadness we announce that Raymond Colin Wilkins passed away this morning,” the statement, posted on the hospital’s website read.
“We would like to thank St George’s staff for the amazing work they have done to care for our beloved Ray.
“We would also like to say thank you for the many goodwill messages we have received from Ray’s friends, colleagues, and members of the public.
“Ray leaves behind his loving wife, Jackie, daughter Jade, son Ross, and his beautiful grandchildren, Oliver, Frankie, Ava, Freddie, Jake and Archie.
“We are asking for privacy at this very difficult time.”
During a long and illustrious career the midfielder spent time at Chelsea, Manchester United, PSG and AC Milan among several other clubs.
He had two stints north of the border, first with Rangers between 1987 and 1989 and then with Hibs in the first half of the 1996/97 season.
The club he is most commonly associated with is Chelsea, having started his career there and spent six years with the Blues, while also having numerous stints as assistant manager. On one occasion, he led the side on a caretaker basis.
A statement from Chelsea read: “Everybody associated with Chelsea Football Club is devastated to learn of the passing of our former player, captain and assistant coach, Ray Wilkins. Rest in peace, Ray, you will be dreadfully missed.”