According to the Prison Service, 84-year-old Rev Canon Terrence Grigg died in hospital on Sunday.
He was sentenced to twelve years in jail earlier this month at Hull Crown Court.
Grigg was found guilty of 14 counts of indecent and serious sexual assault and was accused of grooming children as young as ten-years-old while he was a rector at St Mary's Church in Cottingham, East Yorkshire.
A Prison Service spokesperson said: "As with all deaths in custody there will be an independent investigation by the Prisons and Probation Ombudsman."
The Diocese of York has promised to continue to support Grigg's victims.
It said in a statement: "As we learned of the death of Terrence Grigg we remain concerned for all those he abused and deceived, for whom this news may stir up strong feelings.
"The Church constantly reviews the safeguarding procedures and policies now in place to make it a safer place for everyone.
"We continue to hold those hurt by Terrence Grigg in our prayers and offer them whatever support we can into the future."
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