A statement was issued on his social media accounts, saying he "died peacefully, surrounded by his family" after an "18-month battle with cancer".
Tributes have been paid from around the world to the "extraordinary artist" whose last album was released days ago.
Sir Paul McCartney described him as a "great star" who "played a very strong part in British musical history".
Bowie's son Duncan Jones, who directed Bafta-winning film Moon, wrote on Twitter: "Very sorry and sad to say it's true. I'll be offline for a while. Love to all."
The artist's hits include Let's Dance, Changes, Space Oddity, Starman, Modern Love, Heroes, Under Pressure, Rebel Rebel and Life on Mars.
He was also well known for creating his flamboyant alter ego Ziggy Stardust.
The singer, who had been living in New York in recent years, only released his latest album Blackstar on his birthday on Friday.
The album, which includes just seven songs, has been well received by critics and was intended as a "parting gift" to the world, according to long-time friend and producer Tony Visconti.
May your gentle soul rest in peace Bowie.
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