Hoskins retired from acting in 2012 at the age of 69 after being diagnosed with Parkinson's disease, reported Telegraph online.
His family released a statement saying he died last night in hospital.
His wife Linda and children Alex, Sarah, Rosa and Jack 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."
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The star is best known for his roles as Smee in Steven Spielberg's 'Hook', as PI Eddie Valiant in Disney's live action/animation crossover 'Who Framed Roger Rabbit?' and as Harold in cult British gangster movie 'The Long Good Friday'.
He was awarded a Golden Globe for Best Actor, a BAFTA and received an Oscar nomination for his standout performance in 'Mona Lisa'.
Hoskins's final role saw him star opposite Kristen Stewart and as one of the seven dwarves in 'Snow White and the Huntsman'.