Mr Naidu, a member of the Andhra Pradesh Legislative Council, was admitted to a private hospital in Hyderabad after he complained of high fever two days ago.
He breathed his last in wee hours today, family sources said.
The mortal remains of the TDP leader would be brought from Hyderabad to his native village Venkataramapuram, 30 km from Tirupati, they said.
An official communique to Tirupati district authorities said the Chief Minister would arrive at the leader's village this afternoon and personally pay his tributes to the departed party leader.
Born in 1947, Mr Naidu had joined politics after a career in teaching as college lecturer, when the actor-turned politician NT Rama Rao floated the TDP in 1982, party sources said.
Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.