Hill-Wood who joined the Arsenal board in 1962 stepped up to become chairman in 1982, before stepping down in 2013 due to a heart attack he suffered the previous year.
During his time at the club, he appointed French coach Arsene Wenger as manager in 1996 who went on to be one of the Premier League's most successful coaches.
In their statement announcing his death, Arsenal said: 'It is with deep regret that we announce the death of former chairman Peter Hill-Wood.
'As we celebrate the unique achievement of 100 consecutive years in the top flight this season, the Hill-Wood family were at the helm for the lion's share of this special century, a testament to their tenacity and judgment in ensuring we have remained a significant force in English football for so long.
'Peter and his family's influence on the club cannot be understated, but at this most difficult time for his family and friends, it is Peter the man who we remember with great fondness. Our thoughts are with his wife Sally and his children Sarah, Julian and Charles.'
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