The cause of Banks" death is now unknown, though he is said to have "passed away peacefully'.
"We are devastated to lose him but we have so many happy memories and could not have been more proud of him".
A slew of tributes for the former England global began to pour in online, including one from his old club Chesterfield.
England manager Gareth Southgate said: "I am deeply saddened to hear of Gordon's passing".
"Gordon, who started his career at Chesterfield, was of course part of England's 1966 World Cup-winning team".
"Gordon will be deeply missed and our thoughts are with his family at this very sad time. RIP Gordon Banks. England legend, your legacy will live on".
A legendary FIFA World Cup-winning goalkeeper, who starred for England at the 1966 tournament has sadly passed away at the age of 81.
"On behalf of everyone connected with England, I send my condolences to his wife Ursula, his family and friends".
"Our thoughts are with Gordon's friends, family and supporters at this hard time".
Banks began his career with Chesterfield in 1958 before joining Leicester City the following year.
In eight years at Leicester, he was runner-up in two FA Cup finals and won the League Cup in 1964, before joining Stoke in 1967.
He later played at club level in North America, with spells at Cleveland Stokers in the United Soccer Association and Fort Lauderdale Strikers in the NASL.
In a career of incredible highs, one of his most iconic moments was his acrobatic save from a Pele header at the 1970 World Cup finals in Mexico, which has gone down in history as one of the greatest moments in football.
His status as an all-time great may have been sealed at the 1966 World Cup, but it was the save Gordon Banks produced to deny Pele four years later which became his defining moment on the global stage.
"Gordon was a fantastic goalkeeper, without doubt one of the best England has ever had".