This news was confirmed by the Happy Mondays via their Twitter account.
"The Ryder family and Happy Mondays band members are deeply saddened and shocked to say that Paul Ryder passed away this morning A true pioneer and legend. He will be forever missed We thank you for respecting the privacy of all concerned at this time Long live his funk x", the band wrote.
Paul Ryder founded the band alongside his brother Shaun in 1980, remaining with them until they split up in 1993. He did return for their 2012 reunion shows, before continuing with them for the next 10 years.
Several musicians including Ian Brown, Andy Bell, Tim Burgess, Peter Hook and others also paid homage to Ryder.
The Happy Mondays had been due to headline the Kaleidoscope Festival in London's Alexandra Palace next weekend.