The darts broadcaster had been battling bowel cancer since September 2011 and his death last night (August 11) was confirmed by his manager Dick Allix.
"With great sadness, we announce that following a long illness, broadcaster and author Sid Waddell died peacefully with all his family around him late last night, Saturday August 11th, 2012," Allix said in a statement.
Waddell, who was one of the main commentators throughout Sky Sports' coverage of PDC darts from 1994, was particularly known for his exuberant commentary delivery.
He also published 11 books and wrote for the BBC children's sports shows Jossy's Giants and Sloggers.
Sky Sports colleague Dave Clark said on hearing the news: "He was the voice of darts. Darts isn't going to be the same without Sid Waddell.
"He had a child-like exuberance, he'd be bouncing round like a young puppy in the commentary box, and mix that with the intellect of Einstein.
"He was a brilliant man, a genius of the microphone - I'm going to miss my old mate, that's for sure. I know he's been really battling this cancer for a long, long time and what I hear from the family is it's a blessing that he's gone, but a tragedy."
Jeff Stelling added: "It's shattering news. Back when I was working with him he made more of an impact than any of the players did. He is totally irreplaceable.
"There has never been such a sports commentator to make such an impact. He had a wonderful turn of phrase. He was the leader of the gang and we were all in his gang.
"On the big occasion he was always there - if he wasn't there it wasn't a big occasion. He was the doyen of sports commentating."
BBC Sport's Gary Lineker tweeted: "See that Sid Waddell has lost his fight with Cancer. He really was the voice of his sport. A brilliant, witty, colourful commentator."
Sky Sports managing director Barney Francis said in a statement: "We all remember Sid's wonderful words, his great sense of humour and his passion for the sport he loved.
"Sid was a friend to all of us at Sky Sports, at the heart of our darts coverage since the early 1990s. He was a wonderful man and we will miss him deeply.
"Our thoughts are with [his wife] Irene and family at this very sad time."
Watch an interview with Sid Waddell below: