One of the greats of Italian comedy who expressed his comic qualities through slapstick, satire and irony, Villaggio is best known for the character of accountant Ugo Fantozzi.
He played the iconic character in a series of movies which produced some of Italian cinema's most memorable moments.
"Bye Dad, now you are free to fly again," Villaggio's daughter Elisabetta wrote on her Facebook page on Monday.
In the post, Elisabetta also explained that her father died due to complications related to diabetes.
Italian Premier Paolo Gentiloni also took to social media to pay tribute to the adored actor, referring to him as an “extraordinarily talented comic who taught generations of Italians to recognise their tics", in a post on Twitter.
The actor will lie in state at Rome City Hall early on Wednesday so fans can pay their respects before a non-religious funeral later that day at Rome's Casa del Cinema (Home of Cinema) centre, his children said.
With ANSA
