Banks’ family announced on Tuesday morning that he had “passed away peacefully overnight” in a statement on Stoke’s official website.
He was also remembered for making a remarkable save to deny Brazil striker Pele at the 1970 World Cup in Mexico.
Banks played just under 300 times for Leicester City before moving to Stoke in 1967, where he made 194 appearances in six years at the club.
In the wake of his death, the footballing world has paid tribute to the 81-year-old.
Charlton said: “Gordon was a fantastic goalkeeper, without doubt one of the best England has ever had. I was proud to call him a team-mate.”
Hurst tweeted: “Very sad to hear the news Gordon has died. One of the very greatest.
The goalkeeper made 73 international appearances and lifted the 1966 World Cup after England’s 4-2 win over West Germany at Wembley.
“Sad for football, Stoke City and England fans. Will be very sadly missed.”
England manager Gareth Southgate also reacted to the news, saying: “I am deeply saddened to hear of Gordon’s passing.
“An all-time great for England, I was privileged enough to be in his company on a number of occasions.”
Fellow former England ‘keeper Peter Shilton told Sky Sport News he was in “shock” following the death of Banks.
Shilton, who also played for Leicester, said: “Gordon was a hero when I was a youngster watching Leicester.
“I eventually joined the club and became his understudy at 16. In that era he was just a great goalkeeper.”
The EFL says there will be a period of applause ahead of all fixtures between Tuesday 12 February and Sunday 17 February in celebration of Banks’ life
Leicester City Football Club is deeply saddened to learn of the death of our former goalkeeper Gordon Banks OBE, who has passed away at the age of 81.
Rest In Peace Gordon!
Legend….. RIP Gordon Banks
We are saddened to learn of the death of England’s 1966 World Cup-winning goalkeeper, Gordon Banks OBE.
A true gent, and a true great. Rest in peace.
This is such sad news someone I looked up to and a great mentor. I had the honour of training with him in his last couple of years with England. Definitely England’s greatest goalkeeper and will be sadly missed, wonderful man. Thoughts are with family and friends #RIP