The rock legend passed away in a hospital in Spain,
A statement said: "We are truly devastated to have to announce that Status Quo guitarist Rick Parfitt has passed away at lunchtime today.
"He died in hospital in Marbella, Spain as a result of a severe infection, having been admitted to hospital on Thursday evening following complications to a shoulder injury incurred by a previous fall.
"This tragic news comes at a time when Rick was hugely looking forward to launching a solo career with an album and autobiography planned for 2017 following his departure from Status Quo's touring activities on medical advice.
"He will be sorely missed by his family, friends, fellow band members, management, crew and his dedicated legion of fans from throughout the world, gained through 50 years of monumental success with Status Quo.
"Rick is survived by his wife Lyndsay, their twins Tommy and Lily and Rick's adult children Rick Jnr and Harry.
"No further comment will be made at this time and Rick's family, and the band, ask for their privacy to be respected at this difficult time."
His racing driver son, Rick Parfitt Jnr, confirmed the news on Twitter, writing: "I cannot describe the sadness I feel right now. To many he was a rockstar, to me he was simply 'Dad', and I loved him hugely. RIP Pappa Parf."
Rick, who was due to launch a solo career, had been recovering in Marbella, Spain after suffering a third heart attack in June, which left him with "mild cognitive impairments".
Tributes have began pouring in online for the guitar legend, who was born in Woking, Surrey.
Gary Lineker wrote on Twitter: "The year in which the Status Quo has shifted in so many ways ends with the loss of Rick Parfitt. How terribly sad. #RIP"
Queen's Brian May said: "Shocked and so sad to hear of the passing of Rick Parfitt. Hard to find words. You truly joyfully rocked our world. RIP dear buddy. Bri."
Bob Harris added: "So now we've lost Rick Parfitt from the mighty Quo. Such sad news. #RIP."
Peter Frampton said: "So sad to hear this. Rick Parfitt Rest In Peace", and Piers Morgan said: "RIP Rick Parfitt, 68. Status Quo rock star & great guy. 2016 claims another music legend."
Spandeau Ballet star Martin Kemp wrote: "RIP you lovely man Rick Parfitt! You rocked all around the world and back again!! One of rock's great characters you will be missed!"
It comes just a month after his bandmate Francis Rossi described the shocking moment he watched Rick "die" after suffering a heart attack on stage.
He said: "I saw him lying there and what they were doing to him and I thought 'Oh s***'.
"They were pumping his chest with so much effort his arms were flailing. He was gone.
"I almost said, 'Oh leave him alone'. I wouldn't want people doing that to me. But it wasn't my call.
"It could be seen as one partner trying to bump the other partner off."
Rick announced he would no longer perform with the band after suffering a third heart attack in June.
It came after years of health concerns while playing with the band, who finished a tour in Liverpool last night.
Just days ago the Status Quo legend told how he was "saved" by a doner kebab when he suffered a heart attack on tour last year.
The 68-year-old rocker had returned to his hotel room in Antalya, Turkey, last June after becoming unwell.
The rest of the band ditched their usual fish sushi and instead munched on dodgy doner kebabs, which left PA Lyane Ngan rushing out of the room feeling sick.