Bangarappa (79) is survived by wife, two sons and three daughters.
Bangarappa, who was suffering from kidney related problems and a diabetic, was undergoing treatment since December 7.
He breathed his last at about 0045 hrs, sources said.
The Karnataka government declared a holiday on Monday and a three-day mourning as a mark of respect to the former chief minister.
Speaking to media persons after paying floral tributes to the departed leader, Chief Minister D V Sadananda Gowda said that the last rites would be performed at Bangarappa's native village Kabatur in Shimoga district on Tuesday with full state honours.
"The government has declared a holiday in Shimoga district on Tuesday also to facilitate people to participate in the funeral of Bangarappa," he said.
Gowda also recalled Bangarappa's services to the state and his concern for the welfare of the people.
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