A statement from his manager Dick Allix read: "With great sadness, we announce that following a long illness, broadcaster and author Sid Waddell died peacefully with all his family around him late last night, Saturday August 11th, 2012."
Waddell announced that he was fighting bowel cancer in September last year, and took an indefinite break from his commentary duties.
The 72-year-old Newcastle-born broadcaster had built a cult following for his exuberant commentaries on darts, working on the Sky Sports' coverage of PDC events since 1994.
Some of Waddell's unusual turns of phrases and references have become famous.
He once said of multiple world-champion Eric Bristow that, "When Alexander of Macedonia was 33, he cried salt tears because there were no more worlds to conquer... Bristow's only 27."
And of Phil Taylor, recognised by many as darts' greatest player, Waddell once said, "William Tell could take an apple off your head, Taylor could take out a processed pea."