According to Zambian media, the 77 year old died after "a sudden onset of heightened heart rate".
Cabinet secretary Roland Msiska said on national TV: “It is with a heavy heart that I announce the passing on of our beloved president,"
He said that Mr Sata's wife and son were at his bedside.
“I urge all of you to remain calm, united and peaceful during this very difficult period," Mr Msiska added.
Sata’s death comes just days after Zambia celebrated the 50th anniversary of independence from the UK.
He is the second Zambian president to die in office after Levy Mwanawasa in 2008.
Sata took office in September 2011 after defeating the then incumbent president, Rupiah Banda.
Sata was born in the Zambian town of Mpika in 1936, and worked as police officer during the colonial administration. He later trained as a pilot in Russia before returning home and helping develop housing projects in the nation.
While in office, he warned foreign companies that while their investment is crucial to his nation, they must abide by the labor laws.
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