The Holy See Press Office said Benedict, the first German pope in 1,000 years, died at the Mater Ecclesiae monastery, which he had chosen as his residence after resigning in 2013.
His body would lie in state from Monday in Saint Peter’s Basilica, the Vatican said.
Francis will lead the funeral, to be held in St Peter’s Square on January 5.
Francis became the first pope in 600-years to step down in 2013, citing old age for his resignation.