Lyle spent his final days surrounded by loved ones when he chose to go into palliative care after ending treatment for a third bout of myeloid leukaemia.
His wife, Briony, said in a statement: "It breaks my heart to tell everyone that Jarrod is no longer with us".
Mrs Lyle said he died at 8:20pm Wednesday evening, surrounded by friends and family in Torquay.
His plight touched people around the world and his wife said the messages of support comforted him as his life drew to a close. Our humble thanks to you all.
Briony said that Jarrod left a final message for his supporters before he passed away.More news: Qualcomm's new smartwatch chipset set for September unveiling
Briony Lyle said her husband had asked her to pass on a "simple message: 'Thanks for your support, it meant the world".
Lyle underwent a bone marrow transplant last December following a recurrence of acute myeloid leukemia but opted recently not to continue with treatment after saying he'd "reached his limit" and that he and his doctors had agreed that a "positive outcome" was no longer achievable.
At the age of 17 he was diagnosed with acute myeloid leukaemia, and confined to bed for nine months.
'There will be a public memorial service at The Sands in Torquay at a date to be announced later.
She also explained that her husband wanted donations to be made to charity Challenge, in place of gifts and flowers.More news: Veterinarians ready for efforts to save ailing orca whale
Former test spinner Shane Warne is doing his bit, offering an hour in the nets at the MCG for 10 people to raise funds for the Lyle family. "You were and always will be a fighter and will be missed by so many people".
Lyle, a two-time victor on the Nationwide Tour (now the Web.com Tour), was first diagnosed with acute myeloid leukemia at the age of 17 and suffered recurrances in 2012 and 2017. He turned professional in 2004, qualified for the Asian Tour within another year, and less than 12 months after that was playing in the U.S. on the second-tier Web.com Tour.
"To have so many friends around the world, whether they're spectators, whether they're golfers, whether they're marshals, whatever. They need that. So that's why I made a decision to do it".
"They know that I love them, they know that all the fighting that I did do was to get back out and play golf again".
Many of Lyle's friends and competitors from his playing days are getting ready for the year's final major tournament, the PGA Championship, which begins Thursday at Bellerive Golf Course in Missouri. "Thinking of his family at this time", he posted on Twitter.More news: New York City votes to cap Uber, Lyft vehicle licenses
Australian golf writer Ben Everill described Lyle as "what Australians call a larrikin".