Mr Hoskins had retired from acting in August 2012 after being diagnosed with Parkinson's disease.
A family statement said: "We are devastated by the loss of our beloved Bob.
"Bob died peacefully at hospital last night surrounded by family, following a bout of pneumonia.
"We ask that you respect our privacy during this time and thank you for your messages of love and support."
We are devastated by the loss of our beloved Bob
He was also the face of the iconic BT "It's good to talk" adverts, which ran in the late Eighties and early Nineties.
He is survived by his wife Linda Banwell and his four children Alex, Sarah, Rosa and Jack.
People flocked to Twitter after the death of Mr Hoskins with 'RIP Bob Hoskins' soon trending on the site.
He tweeted: "Oh no, Bob Hoskins. Gone? That’s awful news. The Long Good Friday one of the best British movies of the modern era. A marvellous man."
Hollywood actor James Woods, who starred with Hoskins in the 1995 drama Nixon, mourned his death by celebrating the Briton's acting talents.
He tweeted: "Oh man, what a terrible loss. A great guy and a superb artist."
Fellow Hollywood legend Samuel L Jackson spoke of his sadness at the news, writing: "Truly saddened by the passing of Bob Hoskins! A truly Gigantic talent & a Gentleman. R.I.P."
Actor Paddy Considine also posted: "RIP Bob Hoskins. The man made some classics".
As he worked as a porter, lorry driver and window cleaner he dreamed of acting and claimed he got his big break by accident.
Mr Hoskins said he was mistakenly called for a theatre audition, but proved to be a natural and stage success led him into TV and small roles on films.
His breakthrough came in 1978 when he starred in Dennis Potter's 1978 series Pennies From Heaven as lovelorn salesman Arthur Parker.
His portrayal of London gangster Harold Shand in The Long Good Friday made him into a film star.
Mr Hoskins also appeared in the 1991 hit Hook but another of his films, Super Mario Bros, was panned by critics.
He later expressed his regret for starring in the 1993 film of the Nintendo video game and described it as the "worst thing" he ever did.
Mr Hoskins was also familiar to millions for his iconic adverts for BT in which he told viewers "It's good to talk".
His most recent film was Snow White and the Huntsman, which was released in 2012 and also starred Twilight actress Kristen Stewart.
He was married to Linda for more than 30 years. The couple had children Jack, 28, and Rosa, 31 together.
His elder children Sarah, 42, and Alex, 46, came from his first marriage to Jane Livesey, with whom he was with for more than 10 years before their divorce in 1978.
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