Sanz was admitted at the hospital earlier this week after a prolonged period of fever and tests carried on him indicated that he had contracted the coronavirus.
His debilitating health condition was also worsened by kidney problems.
Sanz's son, Fernando Sanz Duran, who played for Real Madrid between 1996 and 1999, confirmed the sad news on social media late on Saturday night.
'My father has just died,’ Fernando wrote on Twitter.
'He did not deserve this end in this manner. One of the best, most courageous and hardworking people I have seen in my life. His family and Real Madrid were his passion.'
Sanz served as Real Madrid president from 1995 to 2000, helping the club end a 32-year wait to be crowned Champions of Europe for a seventh time in 1998.
Two years later, an eighth European crown arrived under his tenure at the Santiago Bernabeu but he was defeated in that summer’s presidential elections by Florentino Perez.
Sanz helped sign players like Roberto Carlos, Nicolas Anelka and Clarence Seedorf during his time in charge of the club.
A Real statement said: "Real Madrid CF, its president and the board of directors regret with great consternation the death of Lorenzo Sanz, who was president of Real Madrid from 1995 to 2000.
"They also want to express their deepest condolences and all their affection and affection for his wife. Mari Luz, her children, Lorenzo, Francisco, Fernando, Maria Luz (Malula) and Diana, and their family and friends. Condolences that also extend to all Real Madrid.
"During the Lorenzo Sanz presidency, Real Madrid continued to enhance its history and legend.
"Today, Real Madrid is mourning the loss of a president who dedicated a large part of his life to his great passion: Real Madrid.
"Given the current circumstances, Real Madrid will pay him the recognition he deserves as soon as possible."
