A former deputy chairman of the ruling Communist Party's powerful Central Military Commission, Xu was the most senior military figure snared in a sweeping crackdown on corruption within the party launched by President Xi Jinping.
Xu died of advanced bladder cancer that had spread throughout his body and of multiple organ failure, Xinhua news agency said.
Xu Caihou had been expelled from the party and his rank as general had been revoked but an indictment had not yet been announced.
Officials last year had been quoted as saying that Xu was ill with bladder cancer and would get appropriate treatment, but also that the case against him would go forward in a sign of determination to root out wrongdoing at all levels.
Xu had been under investigation since early last year. He had been the top uniformed officer in the military and ranked in seniority only behind then-President Hu Jintao, who was the military commission chairman.
Earlier Xinhua reports had said Xu admitted to allegations that he took "especially huge amounts" of bribes.
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