Eriksson, the first non-British manager of the England team, led the Three Lions to the quarter-finals at three major tournaments during his five-year spell in charge between 2001 and 2006.
In January, Eriksson said he had “at best” a year to live after being diagnosed with cancer.
His children, Lina and Johan, said on Monday: “Our father Sven-Goran Eriksson fell asleep peacefully in his home at Bjorkefors outside Sunne this morning. He has for a long time fought bravely with his illness, but now it came to an end.
“Dad told us at the beginning of this year about his serious illness and received an amazing response from friends and football fans around Europe.
“He was invited to several football teams in England, Italy, Portugal and Sweden. They shared their love for football and for dad.
“It was unforgettable for both him and us. He expressed his appreciation and joy and stated that such beautiful words are usually only uttered when someone has died.
“We hope that you will remember Svennis as the good and positive person he always was both in public and at home with us.”
Sven-Goran Eriksson holding an eagle in front of the fans at Lazio’s Stadio Olimpico
Eriksson visited many of his former clubs this year, including Lazio in May
Eriksson managed 12 clubs, including Manchester City, Leicester, Roma and Lazio, winning 18 trophies.
The Swede also had spells in charge of Mexico, Ivory Coast and the Philippines.
After retiring as a player at the age of 27, he began his managerial career with Degerfors in 1977 before joining fellow Swedish side Gothenburg, where he won the league title, two domestic cups and the 1982 Uefa Cup.
He then went on to enjoy two spells with Portuguese giants Benfica as well as managing Italian sides Roma, Fiorentina, Sampdoria and Lazio – where he won seven trophies including the Serie A title, two Italian Cups and the European Cup Winners’ Cup.
‘Don’t be sorry, smile’
Following his diagnosis, Eriksson spent the year visiting some of his former clubs, including Lazio and Sampdoria.
In March the Swede, a lifelong Liverpool fan, helped lead a Liverpool Legends team which beat an Ajax Legends side 4-2 at Anfield.
He shared a poignant message at the end of his new documentary ‘Sven’, which was released earlier this month.
In the closing scene of the Amazon film, Eriksson says: “I had a good life. I think we are all scared of the day when it is finished – when we die.
“But life is about death as well. 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 has been fantastic. Take care of yourself and your life and live it. Bye.”