The Press Association reports that Rafferty died at his home in Dorset on Tuesday with his family by his side.
In November, he was admitted to hospital following a collapse.
Rafferty, best known for his solo hit ‘Baker Street’ and the song ‘Stuck in the Middle with You’ with his band Stealers Wheel, had previously been treated for liver failure.
Paying tribute, musician and BBC 6 Music presenter Tom Robinson said: “I’m deeply saddened to hear that Gerry has lost the battle with his failing health.
“His early work with Stealers Wheel was an inspiration to a whole generation of songwriters in the 70s including me, and many of us had hoped his recent album, ‘Life Goes On’, in 2009 would lead to a full-time return to writing and performing for a lyrical and highly gifted artist – click to read original.
Here he is with one of his biggest hits – Baker street
Also another one of his biggest hits is – Stuck in the Middle with You
He will be missed. Rest in Peace.