Confirming the development in a statement, the star’s publicist said: “It is with great sadness that we can confirm our beloved son, brother and friend George passed away peacefully at home over the Christmas period.
“The family would ask that their privacy be respected at this difficult and emotional time. There will be no further comment at this stage.”
Michael, who was born Georgios Kyriacos Panayiotou in north London, postponed a series of concerts in 2011 after being taken to hospital for treatment for pneumonia.
After treatment in a Vienna hospital, he made a tearful appearance outside his London home and said it had been “touch and go” whether he lived.
Doctors were said to have performed a tracheotomy to keep his airways open and he was unconscious for some of his spell in hospital, BBC reports.
The 57-year-old music star, who lunched his musical career with Wham! in the 1980s and later continued his success as a solo performer, sold more than 100m albums throughout a career spanning almost four decades.
Before his death, Michael was reported to be working with producer and songwriter Naughty Boy on a new album.