The Jewish artist was a grandson of psycho-analyst Sigmund Freud, and fled his native Germany in 1933 with his family, becoming a British citizen in 1939.
We expect Freud's death to provoke a significant spike in interest for his work, and could see prices for his pieces rise over the coming months and years.
Freud was perhaps best known for his nudes.
His Benefits Supervisor Sleeping, a 1995 depiction of a sleeping nude on a couch, sold for £20.6m in 2008 - a record for an artwork by a living artist.
Earlier this year his 1944 work Boy on a Sofa sold for just under £1.5m ($2.4m), smashing its £400,000-600,000 estimate and setting a world record for a work on paper by the artist.
This portrait depicts child burglar Billy Lumley, who had tried to break into Freud's house. Created in 1944, the piece was bought that same year for £18m.
A number of unfinished paintings are believed to exist; Freud continuing to paint right up until his death.
"He always liked to keep a couple of paintings on the go in case he dropped off the twig and I know he's done that," said art critic William Feaver.
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