Reg Grundy died at his home in Bermunda, where he had lived with his wife Joy since 1982.
The sad news was confirmed by his very good friend, Alan Jones, who announced his passing on his morning radio programme.
Alan said: "Reg Grundy has passed away in the arms of his beloved wife Joy, on their Bermuda estate.
“So ends a remarkable chapter of a great Australian."
The head of FremantleMedia Australia, Ian Hogg, also made an announcement confirming the news.
He said: "His legacy to Australian entertainment is insurmountable.
"His visionary ability to know how to connect Australian families through some of this country's most loved programming has stood the test of time.
"Reg is an icon and he will be sorely missed."
After learning of Reg’s passing, Neighbours stars - both old and new - have flocked to Twitter to pay their respects.
Jason Donovan said: “Sad news about Reg Grundy.
“One of the true pioneers of Australian television who gave opportunity to many. My thoughts go out to his family.”
Australian TV personality John Burgess added: “Very sad day today, Reg Grundy was an all round good bloke, loved a chat, made amazing TV - I owe him a lot…
“I auditioned for Wheel of Fortune in 1984, the rest as they say, is History, I did the show for 12 yrs - Reg Grundy had a knack for great TV.”
Alan Fletcher – Dr Karl Kennedy – said: “His passion and vision brought the world entertainment of the highest standard for many decades.”
And Neighbours veteran Jackie Woodburne, who plays Susan Kennedy, added: “Reg was a true groundbreaker in Australian television in the 70s and 80s, and beyond in light entertainment and drama.
“Shows like Young Doctors, where I cut my teeth, were a pivotal part of Australian TV. Above all he was just a lovely man and he will be very missed.”
Reg Grundy has been hailed as the father of Australian television, helping to create such shows as Neighbours, Prisoner, Sons And Daughters, Wheel Of Fortune, Family Feud, The Young Doctors, The Restless Years, and countless others.
Our thoughts are with his family and friends at this sad time.