"Reg Grundy has passed away in the arms of his beloved wife Joy, on their Bermuda estate," radio personality Alan Jones, a long-time friend, said on his morning programme.
"So ends a remarkable chapter of a great Australian."
Reports said he had been in ailing health in recent years, although no cause of death was immediately given.
Grundy founded one of Australia's first entertainment groups - the Reg Grundy Organisation - and was widely regarded as the king of the game show, as well as producing a host of very successful soap operas.
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A year later he founded his entertainment group and began producing game shows for the Australian and overseas markets, including Sale of the Century and Blankety Blanks.
Grundy also developed a series of hit drama series, including Neighbours, Prisoner, Young Doctors and Sons and Daughters, as well as Abba: The Movie in 1977.
At his peak, he became so entrenched in Australian folklore that it was common in the 1980s and 1990s for Australians to refer to their underwear as "Reggies" or "Grundies", rhyming slang for "undies".
He lived for years in Bermuda and is survived by wife Joy and daughter Kim, from a previous marriage.