He had been confronting various health problems in recent years.
"President Talabani died today after fast deterioration in his health in a Baghdad hospital," reported Xinhua quoting presidential sources.
It was earlier reported, citing a medical source, that Talabani had been admitted to Baghdad hospital in a critical condition late Monday night.
He was unconscious due to brain stroke.
The presidential office, in an earlier statement, had said Talabani was admitted to a hospital in Baghdad "because of fatigue and tiredness".
Talabani had held a meeting Monday with Iraqi Prime Minister Nuri al-Maliki to discuss means to ease latest tension between Baghdad and the autonomous region of Kurdistan.