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Australian team doctor Peter Brukner said in a statement released by Cricket Australia on Thursday afternoon that Hughes had died at St Vincent's Hospital.
Dead at 25: Phillip Hughes. Photo: Getty"He never regained consciousness following his injury on Tuesday," he said.
Advertisement"He was not in pain before he passed and was surrounded by his family and close friends.
"As a cricket community we mourn his loss and extend our deepest sympathies to Phillip's family and friends at this incredibly sad time.
David Warner, accompanied by his wife Candice Falzon cries as he leaves the hospital on Thursday. Photo: Daniel Munoz"Cricket Australia kindly asks that the privacy of the Hughes family, players and staff be respected."
A press conference with Cricket Australia boss James Sutherland and a surgeon was expected to be held at 5pm.
Cricketers past and present are leaving the hospital inconsolable.
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The career of Phillip HughesThe cricketing career of Phillip Hughes. Photo: Getty Images
Sean Abbott, the NSW bowler who delivered the ball that struck Hughes, has also left the hospital.
Hughes, 25, has been in an induced coma since the accident on Tuesday afternoon.
Heartbreaking: Australian cricketers Brad Haddin and Aaron Finch arrive at St Vincent's Hospital in Sydney. Photo: GettyHughes was hit on the side of the head when he attempted to hook the bouncer, delivered by NSW paceman Sean Abbott on Tuesday.
While he seemed to compose himself, the former Test opener leant forward, put his hands on his knees and, after a few seconds, suddenly collapsed head-first on to the pitch.
It was horrific, and the desperation of the moment was reflected by the way the umpires and his former teammates raced to his aid.
Cricket NSW chairman John Warn and chief executive Andrew Jones have released a statement expressing their deepest sympathy to the Hughes family.
"The entire NSW cricket community offers our heartfelt condolences to Phillip's mother and father Virginia and Greg, sister Megan and brother Jason at this most difficult of times," Mr Warn said.
"Their grief is being felt across the country and around the cricket world as the extended cricket family comes to terms with the sad loss of a very popular and talented young player."
Mr Jones said the NSW players and staff were thinking of Phillip's family.
"So many in the NSW cricket family know Greg, Virginia, Jason and Megan personally. It is tragic that Phillip has been taken from them so young. He reflected their strong country values and warmth as a loving, caring family.
"Phillip is fondly remembered as a bright and cheeky young man with an infectious smile who emerged as an outstanding junior more than a decade ago.
Prime Minister Tony Abbott described Hughes as a "young man living out his dreams".
"His death is a very sad day for cricket and a heartbreaking day for his family," Mr Abbott said.
"What happened has touched millions of Australians. For a young life to be cut short playing our national game seems a shocking aberration.