The Padma Bhushan awardee was 79.
Patel was widely known for his travelogues and his book 'Vidisha' earned him many accolades.
Expressing grief over the demise of Patel, Gujarat Chief Minister Narendra Modi said it was a big loss to Gujarati literature.
"Demise of great author Bholabhai Patel, president of Gujarat Sahitya Parishad is a big loss to Gujarati literature. May his soul rest in peace," Modi wrote on popular micro-blogging website Twitter.
"My deepest condolences, I feel sad, may his soul rest in peace prayers," he said.
GSP, a literary institution for the promotion of Gujarati literature, has been headed in the past by Mahatma Gandhi and other iconic figures.
