The three-time world heavyweight champion had suffered from Parkinson's disease since 1984 - three years after he retired from the sport.
In the days before his death, Ali had been admitted to hospital in Phoenix, Arizona, suffering from respiratory issues.
Reports had suggested his breathing problems had been complicated by his neurological disorder, which had long impaired his speech.
A statement from spokesman Bob Gunnell said: "Muhammad Ali's funeral will take place in his hometown of Louisville, Kentucky.
"The Ali family would like to thank everyone for their thoughts, prayers, and support and asks for privacy at this time.
Born in January 1942 as Cassius Marcellus Clay Jr, a name shared with a 19th century slavery abolitionist, the boxer changed his name to Muhammad Ali after his conversion to Islam.
May his soul rest in peace..
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