Eriksson revealed in January this year that he had been diagnosed with terminal pancreatic cancer, stating he had "at best" a year to live.
His death was confirmed by his agent Bo Gustavsson, who confirmed Eriksson had passed away on Monday at his home surrounded by his family.
A statement read: "Sven-Goran Eriksson has passed away. After a long illness, he died during the morning at home surrounded by family.
"The closest mourners are daughter Lina; son Johan with wife Amana and granddaughter Sky; father Sven; girlfriend Yanisette with son Alcides; brother Lars-Erik with wife Jumnong."
Eriksson coach became the first foreign manager of England in 2001 and managed the nation's dubbed 'golden generation'.
The Swede led England to the quarter-finals at three major tournaments during a five-year tenure, helping the Three Lions to fifth in the FIFA rankings.
He stepped away from the role after the 2006 World Cup and later managed the national teams of Mexico and the Ivory Coast.
Eriksson managed 12 clubs across a successful career including Manchester City, Leicester, Roma and Lazio, winning 18 trophies in the process.
Eriksson retired as a player aged 27 and started his managerial journey in his native Sweden with Degerfors IF in 1977.
He then joined Goteborg where he achieved his first success, winning the Swedish league title, two Swedish cups and the 1981 UEFA Cup.
Eriksson also embarked on two spells at Benfica before managing Italian sides Roma, Fiorentina, Sampdoria and Lazio.
His time at Lazio yielded seven trophies including the Serie A title, two Italian cups, the European Cup Winners' Cup and UEFA Super Cup.
After announcing his cancer diagnosis, Eriksson spent time visiting some of his former employers including Lazio.
Also a lifelong Liverpool fan, he was granted his wish of leading the Reds out at Anfield when a Liverpool Legends team played Ajax in a charity match in March.
Eriksson called the occasion "a memory for life" as Liverpool went on to win the game 4-2.
Eriksson had been open and upbeat despite his diagnosis, previously saying he hoped to be remembered as a "positive guy".
"I had a good life. I think we are all scared of the day when we die, but life is about death as well," he said at the end of his recently released documentary film 'Sven'.
"You have to learn to accept it for what it is. Hopefully, at the end, people will say, 'yeah, he was a good man', but everyone will not say that.
"I hope you will remember me as a positive guy trying to do everything he could do.
"Don't be sorry, smile. Thank you for everything, coaches, players, the crowds, it's been fantastic. Take care of yourself and take care of your life. And live it."