A statement issued by the club reads: "It is with deep regret that Ipswich has learnt of the death of John Lyall."
"As first-team boss, he masterminded the club's promotion to the new premiership in 1992 and remained in charge for a further two years. The thoughts of everyone at the club are with his family at this sad time."
Simon Milton, a member of Lyall's town side told the club website: "Its a very sad day for Ipswich town and football in general. John had a massive influence on my career and gave me the chance to play at the highest level of the English game.
"Its easy for people to forget what he achieved here and my thoughts go out to his family. He will be sadly missed."
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