Summer, 63, whose real name is LaDonna Adrian Gaines, died at her Naples, Florida home yesterday.
"Early this morning, surrounded by family, we lost Donna Summer Sudano, a woman of many gifts, the greatest being her faith. While we grieve her passing, we are at peace celebrating her extraordinary life and her continued legacy," Summer's family said in a statement.
The 5-time Grammy winner was the first artist to have three consecutive albums reach No 1 on the US Billboard chart. Her other hits during the era include "Hot Stuff", "I Feel Love" and "She Works Hard for the Money".
TMZ, which first reported her death, cited sources as saying that Summer was trying to keep the extent of her illness under wraps. She also believed that inhaling toxic air after 9/11 gave her the lung cancer.
Summer's early musical training came through her devout Christian parents who introduced her to both gospel and classical music. The disco diva's last album, "Crayons", was released in 2008. She is survived by her husband, Bruce Sudano, three children, and four grandchildren.
Leading a tribute to Summer, President Barack Obama said her death was a huge loss to the music industry.
"Michelle and I were saddened to hear about the passing of Donna Summer. A five-time Grammy Award winner, Donna truly was the 'Queen of Disco.' Her voice was unforgettable, and the music industry has lost a legend far too soon. Our thoughts and prayers go out to Donna's family and her dedicated fans," Obama said in a statement. (MORE)