The former West Brom, Hull, Everton, Watford, Aston Villa and Norwich man was only 60.
Shakespeare had revealed that he was undergoing treatment for cancer back in October 2023.
His family have announced his passing this week, shocking the English footballing world.
The statement added that Shakespeare "passed away peacefully at home surrounded by his family.”
It continued: "While the family are immensely proud of his footballing achievements as both a player and a coach, to us, his family, he will always primarily be a loving and loved husband, father, son, brother and uncle.
"The loss is devastating to us all and we would ask that privacy be given at this incredibly difficult time as we try to come to terms with, and mourn, the loss of a very special person.
"The family would like to thank and acknowledge the many prayers and good wishes sent during the past few difficult months, many of which we were unable to respond to but all meant a lot to Craig and the family."