"Saddened to hear about the passing of great hockey player Mohd Shahid. One of India's greatest sportsmen. Condolences to his family, friends," Banerjee tweeted.
He was part of the Indian hockey team that clinched the gold medal at the 1980 Moscow Olympics.
The former national captain was battling for life after a bout of jaundice, and dengue made his condition worse.
Earlier this month, the former star forward was airlifted from Varanasi and admitted to the Gurgaon hospital.