Kendall won the title with the club as a player in 1969 as part of the famous 'Holy Trinity' along with Alan Ball and Colin Harvey, but undoubtedly his best achievements came when he returned to Goodison Park in 1981.
Within three years he had won the First Division championship, repeating the feat in 1987, while also winning the FA Cup and European Cup-Winners' Cup in the club's most successful era in which the Toffees became a powerhouse of British football.
"It is with great sadness that Everton Football Club has learned of the passing of Howard Kendall," said a statement from the club.
"The most successful manager in the history of the club and one of the greatest players to pull on the Everton jersey, he passed away in hospital in Southport this morning at the age of 69, surrounded by loved ones.
"The thoughts of everyone associated with the club are with Howard's family at this difficult time and it would be appreciated if everyone could respect their request for privacy."