Chirac was president from 1995 to 2007. He shaped his style in the mould of post-war leader Charles de Gaulle, seeking to strengthen France's status as a player on the world stage.
The National Assembly interrupted a sitting to hold a minute's silence. President Emmanuel Macron cancelled a public engagement and scheduled a televised address later on Thursday.
"He passed away peacefully this morning surrounded by his loved ones," his son-in-law Frederic Salat-Baroux told Reuters.
Mayor of Paris for 18 years and prime minister for presidents on the political left and right before entering the Elysee Palace himself, Chirac had a knack for connecting with voters, particularly in rural France.
In death, he will be fondly remembered for his defiant opposition to the US-led invasion of Iraq, a military campaign which turned Chirac's relationship with then British Prime Minister Tony Blair into an acrimonious low.
Blair said he was deeply saddened by Chirac's passing.
"He was a towering figure in French and European politics over many decades. Whatever our differences from time to time, he was always unfailingly kind, generous and personally supportive," Blair said in a statement.
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