Three-time Formula 1 champion Niki Lauda has died after a lengthy battle with illness it was confirmed on Tuesday.

 The Austrian had been away from the paddock for almost a year following a lung transplant last summer and his recovery, which appeared to be going well, was setback by flu at the start of the year.

Earlier this week it was reported that Lauda was back in hospital receiving kidney dialysis and now his family has announced that the 70-year-old had ultimately lost his battle.

"With deep sadness, we announce that our beloved Niki has peacefully passed away with his family on Monday," a statement to Austrian media was reported by Autosport.

"His unique achievements as an athlete and entrepreneur are and will remain unforgettable, his tireless zest for action, his straightforwardness and his courage remain.

"A role model and a benchmark for all of us, he was a loving and caring husband, father and grandfather away from the public, and he will be missed."

Despite his status as a triple F1 champion, it is often 1976 that most associate Niki with.

A famous title fight with McLaren's James Hunt which saw the then-Ferrari driver miraculously survive a fiery crash at the Nurburgring, with the injuries leaving a permanent mark on his face.

Not only did Lauda cheat death, but he would also race again just six weeks later at Monza finishing fourth, missing just two races in that time.

In heavy rain at the Fuji finale, however, the Austrian would pull into the pits citing the dangerous conditions with Hunt going on to take the title by a single point.

Having won the title twice with Ferrari in 1975 and 1977 and retiring from F1 after a year and a half with Brabham in 1979, Lauda would return in 1982 with McLaren and secure a third championship in 1984 beating Alain Prost.

After racing, he would have a few brief forays in management, but his most successful would be a non-executive chairman role at Mercedes which he had held since 2012.

It was Lauda who attracted Lewis Hamilton from McLaren for 2013 and he was there for all five championships since 2014.

A legend in every sense of the word, he will be truly missed by everyone in the F1 paddock.

RIP Niki.