Nieto, who won 13 world titles, died in hospital on Thursday a week after sustaining multiple injuries in a quad bike accident in Ibiza.
Nieto was on a quad bike on Wednesday last week when he "had an accident with a tourism vehicle", police said at the time. Earlier in the day, the hospital had said he was in "very critical condition".
His son, Galete Nieto, confirmed his father had passed away on Thursday in comments shown on Spanish national television. Among his many achievements, Nieto had the distinction of having won close to half the races, a total of 186 grands prix, that he competed in. "Rest in peace maestro!"
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Real Madrid also remembered Nieto.
Former Liverpool goalkeeper Pepe Reina said on Twitter: "My deepest condolences to friends and family of Angel Nieto. awful news". "Spanish sport has lost a true legend who will never be forgotten".
A colourful character throughout his time in the grand prix world championship, Nieto claimed six 50cc world championships and seven 125cc titles in a dazzling career that saw him post wins on five different makes of motorcycle: Derbi, Bultaco, Garelli, Minarelli and Kreidler. He retired aged 39 two years after his final world championship in 1986. "It was 5 in the morning and I wanted to go home because I was exhausted, while he wanted to keep me there at all costs".
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