He was 71.
Prakash, a prominent Lingayat leader who was part of the Janata Dal-Secular, had later quit the party and joined hands with the Congress.
However, since the past three years he had taken a back seat from politics due to failing health.
Apart from being a politician, he was also a writer, theatre personality and social activist.
Prakash was suffering from intestine cancer for the past two-and-a-half years and was admitted to Manipal Hospital.
Karnataka Governor H R Bhardwaj mourned the death of former deputy chief minister M P Prakash, saying he always kept service before self.
"Prakash always kept service before self and carved out a place for himself in public life. The void left behind by Prakash demise cannot be filled", Bhardwaj said in his condolence message.
"Prakash, a thinker, was committed deeply to pro-people ideologies. He made significant contributions to the state. In the death of Prakash, the state has lost a towering personality", Chief Minister B S Yeddyurappa said.
Opposition Congress leader in the state assembly Siddaramaiah, one of the close associates of Prakash, paid his last respects to the moral remains of the leader at the Freedom Park.
"Prakash is a great parliamentarian. In the death of Prakash, the state had lost a statesman and leader who strived for the welfare of all sections of the society", he said.
Karnataka Pradesh Congress Committee President G Parameshwara, Kannada Chaluvali leader Vatal Nagaraj, former chief minister H D Kumaraswamy and JDS state unit working president P G R Sindhya also expressed grief over the death of Prakash.
Wih inputs from PTI
Image: M P Prakash
Karnataka by-poll debacle: Top Cong leaders resign
Bhardwaj wants a Congress govt in Karnataka: Yeddy
9 Naxals killed in Jharkhand encounter
K'taka guv's action politically motivated: BJP
K'taka CM takes battle against Governor to Delhi