The Balearic pioneer, known for his extended sets and mixes for Café del Mar, was battling colon cancer.
In July, Padilla revealed he had been diagnosed with cancer and started a crowdfunding effort to cover his living expenses. News of the legendary DJ's passing was posted to Padilla's Facebook page.
"It is with great sadness that we bring you the news that José passed away peacefully in his sleep on Sunday night here on his beloved island of Ibiza," it read. The note went on to thank those who sent donations and messages of support as well as the staff of the Can Misses Hospital.
Padilla, known as the "godfather of chill-out," was a key architect of the sound and idea of Ibiza. His sunset sets at the Café Del Mar served as the basis for the wildly popular mix series of the same name, while his marathon ten-hour sets, spanning funk, soul, jazz, disco and rock, were key in the invention of Balearic beat. Padilla remained active up until the end, still playing over 40 years since he began DJing. He maintained a globe-trotting gig schedule and collaborated with modern-day acolytes on the 2015 album, So Many Colours.
Watch the video for José Padilla's "Walking On Air."