Ashington-born Charlton, a World Cup winner with England in 1966 alongside brother Bobby, had been diagnosed with lymphoma in the last year and was also battling dementia.
He spent his entire 21-year playing career at Leeds United, making a joint club record 773 appearances, before retiring as a player in 1973 and going on to enjoy a successful and colourful career as a manager.
Middlesbrough, where he masterminded promotion to Division One in 1974, and Newcastle United, where he gave future England star Paul Gascoigne his debut during his only season in charge, were among the clubs he bossed.
He also led the Republic of Ireland to two World Cup finals’ tournaments.
A family statement read: "Jack died peacefully on Friday, July 10 at the age of 85. He was at home in Northumberland, with his family by his side.
"As well as a friend to many, he was a much-adored husband, father, grandfather and great-grandfather.
"We cannot express how proud we are of the extraordinary life he led and the pleasure he brought to so many people in different countries and from all walks of life.
"He was a thoroughly honest, kind, funny and genuine man who always had time for people.
"His loss will leave a huge hole in all our lives but we are thankful for a lifetime of happy memories."
Leeds United tweeted that the club was "deeply saddened to learn club legend Jack Charlton passed away last night at the age of 85".