Banks was part of the England team that won the 1966 World Cup and was credited with making the "Save of the Century" when he denied Brazilian great Pele at the tournament four years later.
Three-time World Cup victor Pele said on social media: "I have great sadness in my heart today and I send condolences to the family he was so proud of".
The 73 capped shot-stopper, who is regarded as one of the greatest goalkeepers in the world, was named Federation Internationale de Football Association goalkeeper of the year six times.
We, at Soccer Laduma, send our condolences to the family and friends of Gordon Banks.
He was sold to Stoke for £50,000 in 1967, helping them win the League Cup in 1972. "We had some great goalkeepers in those days, and the only person I can think who came near was Pat Jennings".
Banks had played in 73 internationals when he was forced to retire in 1972, at the age of 35, after losing the sight in his right eye in a auto accident. "At first I thought, 'You lucky so-and-so, ' but then I realized it has been a bit special".
Banks, who famously only had one eye, played most of his career for Leicester City and Stoke City, as well as spells with Cleveland Stokers, Fort Lauderdale Strikers, and St Patrick's Athletic.More news: Delhi: Massive fire breaks out in hotel, 9 die
Tributes poured in from football stars, pundits and clubs, including Gary Lineker who tweeted his condolences, calling Banks "an absolute here of mine".
'An all-time great for England, I was privileged enough to be in his company on a number of occasions'.
Legendary England worldwide keeper Gordon Banks, who made one appearance for Scarborough FC, has sadly passed away aged 81.
"Our thoughts are with Gordon's family and friends".
The game, however, will always be remembered for a save widely acclaimed as the greatest in World Cup history.
"He just seemed to know everything about the game and brought in these new things which he had done himself, so all of that shows you just what skills he had got".
Fellow goalkeeper Neville Southall added: "RIP Gordon Banks A incredible keeper and it was a joy to have met and worked with him".