Khan was admitted to a hospital in Canada and his son confirmed that his last rites will be conducted in the country.
"My dad has left us. He passed away on December 31 at 6 pm as per Canadian time due to prolonged illness. He slipped into coma in the afternoon. He was in the hospital for 16-17 weeks.
"The last rites will be performed here in Canada only. We have our entire family here and we live here so we are doing it," Kader Khan's son Sarfaraz told PTI.
"We are thankful to everyone for their blessings and prayers," he added.
Kader Khan had developed breathing issues and the doctors had reportedly transferred him from regular ventilator to BiPAP ventilator.
As per reports, he was suffering from Progressive Supranuclear Palsy, a degenerative disease that causes loss of balance, difficulty in walking and dementia.
He wrote dialogues for over 250 movies. Before becoming an actor he had written dialogues for Randhir Kapoor-Jaya Bachchan's "Jawani Diwani".
Veteran Bollywood actor Kader Khan passes away at 81