He was 83.
The death was confirmed by ABC News President James Goldston today. Nichols died last evening.
The family will hold a private service this week; a memorial will be held at a later date, Goldston said.
During a career spanning more than 50 years, Nichols, who was married to ABC's Diane Sawyer, managed to be both an insider and outsider, an occasional White House guest and friend to countless celebrities who was as likely to satirize the elite as he was to mingle with them.
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"No one was more passionate than Mike," Goldston wrote in an email announcing Nichols' death.
Meryl Streep, whose films for Nichols included "Silkwood" and "Heartburn," said he was "an inspiration and joy to know, a director who cried when he laughed ... An indelible, irreplaceable man."
Director Steven Spielberg called Nichols "a friend, a muse, a mentor, one of America's all-time greatest film and stage directors."
His 1966 film directing debut "Who's Afraid of Virginia Woolf?" unforgettably captured the vicious yet sparkling and sly dialogue of Edward Albee's play, as a couple (Richard Burton and Elizabeth Taylor) torment each other over deep-seated guilt and resentment.