"We are heartbroken and sad to announce that our beloved Aaron passed away at home surrounded by his family at 5:57 a.M." Frankie Pryor, his widow, said in a statement from the family home near Cincinnati, Ohio.
"He was known around the world as 'The Hawk' but to our family he was a beloved husband, father, grandfather, brother, uncle and friend."
Pryor built a 39-1 record with 35 knockouts during a career that was interrupted by drug addiction.
He scored a 14th-round knockout to win the match at Miami's Orange Bowl on November 12, 1982, retaining his World Boxing Association crown.
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The two fighters squared off in a rematch on September 9, 1983 in Las Vegas. Pryor knocked out Arguello in the 10th round and then announced his retirement. He returned nine months later, however, successfully defending his title for the final time by defeating Gary Hinton with a 15-round split decision.
Among the boxing legends tweeting condolences was fellow Hall of Famer Sugar Ray Leonard:
"My friend and hero of millions of Fight fans has left us! Aaron Pryor RIP Champion and you will be missed.
Disclaimer: No Business Standard Journalist was involved in creation of this content