Australia team doctor Peter Brukner said the batsman passed away in hospital, never regaining consciousness.
Phillip Hughes, who also played for Hampshire, Middlesex and Worcestershire, was hit by a delivery from bowler Sean Abbott.
“It’s an understatement to say we’re completely devastated,” said Cricket Australia boss James Sutherland.
“The word tragedy gets used too often in sport, but this freak accident is a real life tragedy.”
Australia captain Michael Clarke read out a statement on behalf of the Hughes family at a news conference held at St Vincent’s Hospital, where the player, who would have been 26 on November 30, was being treated.
Speaking on behalf of parents Greg and Virginia, sister Megan and brother Jason, Michael Clarke said: “We’re devastated by the loss of our much-loved son and brother, Phillip. It’s been a very difficult few days.
“We appreciate all the support we have received from family, friends, players, Cricket Australia and the general public.
“Cricket was Phillip’s life and we as a family shared that love of the game with him. We would like to thank all the medical and nursing staff at St Vincent’s Hospital and Cricket New South Wales medical staff for their great efforts with Phillip. We love you.”
Phillip Hughes, batting for South Australia, collapsed face first on the ground after being hit by a bouncer from Abbott during a Sheffield Shield game against New South Wales.
He had been wearing a helmet but the ball struck him at the top of the neck, causing the injury.
Phillip Hughes had CPR and mouth-to-mouth resuscitation at the ground before being taken to St Vincent’s Hospital, where he had a 90-minute operation to relieve pressure on his brain.
But his death was confirmed in a statement on November 27.
Speaking at the news conference, Peter Brukner explained that Phillip Hughes had died as a result of “vertebral artery dissection”.
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