The sad news has been confirmed by his agent and Jones’ family paid tribute in a statement.
It stated: “We are deeply saddened to have to announce the passing of beloved husband and father, Terry Jones.
“Terry passed away on the evening of 21 January 2020 at the age of 77 with his wife Anna Soderstrom by his side after a long, extremely brave but always good humoured battle with a rare form of dementia, FTD.
“Over the past few days his wife, children, extended family and many close friends have been constantly with Terry as he gently slipped away at his home in north London.
“We have all lost a kind, funny, warm, creative and truly loving man whose uncompromising individuality, relentless intellect and extraordinary humour has given pleasure to countless millions across six decades.
“His work with Monty Python, his books, films, television programmes, poems and other work will live on forever, a fitting legacy to a true polymath.”
The family went on to thank the doctors who treated Jones during his battle with dementia, adding: “We, his wife Anna, children Bill, Sally, Siri and extended family would like to thank Terry’s wonderful medical professionals and carers for making the past few years not only bearable but often joyful.
“We hope that this disease will one day be eradicated entirely.
“We ask that our privacy be respected at this sensitive time and give thanks that we lived in the presence of an extraordinarily talented, playful and happy man living a truly authentic life, in his words ‘Lovingly frosted with glucose.'”
It comes nearly a year after Terry Gilliam confirmed his friend’s condition had become so severe he could no longer speak.
Terry shared the sad update on his pal as he dashed hopes that the comedy troupe would ever reunite again.
He told the Daily Star Sunday : “There’s no chance of us doing a reunion. There’s only four of us left that really function now. And that is not Python, so there’s no point.”
Jones was an original member of the legendary comedy troupe, and was largely responsible for getting them together.
He met his writing partner Michael Palin while studying at Oxford University and they went on to write for British comedy shows together.
Jones appeared in sketch series Twice A Fortnight with Palin and other stars including Bill Oddie, as well as Do Not Adjust your Set with him and another future Python Eric Idle and David Jason.
The pair went on to create Monty Python’s Flying Circus with Palin and Idle as well as Graham Chapman, John Cleese and Terry Gilliam.
They aimed to create a new style of comedy sketch show and they succdessded.
Together, the Pythons created some of the world’s most famous comedy sketches of all time and released a number of hit movies, including Life Of Brian and The Holy Grail.
Jones was responsible for some of the best loved and most quoted lines in British comedy, including “Now, you listen here! He’s not the Messiah. He’s a very naughty boy!”
His most quoted line, from his role as Brian’s mother in Monty Python’s Life Of Brian, was “I’m alive, I’m alive!”
After news of his death broke, tributes have flooded in from friends and fans, including radio presenter Tony Blackburn.
He tweeted: “So sorry to hear Terry Jones has passed away, I just love Monty Python. RIP Terry and thanks for all the laughs.”
Jones is survived by his wife Anna, and children Bill, Sally, Siri.