Jaffrey suffered a fall at his home here and passed away in a London hospital in the early hours of Saturday.
"The actor collapsed at his London home from a brain haemorrhage and never regained consciousness," a statement from Jaffrey Associates said.
A memorial service is expected to take place in a few weeks' time here.
The news about the India-born British actor's death was first shared by his niece Shaheen Agarwal on Facebook.
"The entire Jaffrey Family bids you, 'adieu', you beautiful, beautiful man."
Jaffrey is survived by his wife, Jennifer, who runs a casting agency in London. He has three daughters --Zia, Meera and Sakina (also an actress) from his first marriage to Madhur, an actress and celebrity cook. They divorced in 1966.
Paying tribute to Jaffrey, Prime Minister Narendra Modi wrote, "Saeed Jaffrey was a multifaceted actor whose flair & versatility will always be remembered. Deepest condolences on his passing away."
"Goodbye dear Saeed. Started my career with you in Masoom. Can't forget your kindness and enthusiasm for your art and others."
Jaffrey starred in as many as 100 Hindi films including Satyajit Ray's "Shatranj Ke Khiladi" opposite Sanjeev Kumar, "Chashme Buddoor", "Masoom", "Kissi Se Na Kehna", "Mandi", "Mashaal" "Ram Teri Ganga Maili", "Ram Lakhan", "Ajooba" and "Henna".
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