The Scottish actor, who played Donald Stewart for seven years alongside Janine Duvitski, Siobhan Finneran and Jake Canuso in the ITV series, passed away on Thursday morning.
"We are terribly saddened to hear that Kenny Ireland has passed away, our thoughts are with his family at this time," said a spokesperson for ITV. "He was a much-loved actor, not only by the cast and crew on Benidorm but by the millions of fans out there.
Kenny Ireland with his Benidorm co-star Janine Duvitski
"He appeared as Donald Stewart in Benidorm from the first episode and helped play a huge part in its success. He will be greatly missed."
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Kenny left Benidorm in June to focus on his cancer treatment but will now be written out of the show due to his untimely death.
"Devastated to hear of the death of Kenny Ireland who played my Dad in ITVs "The Honey Siege" in 1987," tweeted actor Lee Ormsby. "RIP and God bless xx".
Kenny played Donald Stewart in the show for seven years
Bosses at Edinburgh's Royal Lyceum Theatre, where Kenny was director for over a decade, also released a statement saying "We are greatly saddened to learn today that Kenny Ireland, Artistic Director of The Lyceum from 1992-2003 passed away this morning."
Kenny, who leaves behind his agent wife Meg, previously starred in Victoria Wood As Seen On TV, Taggart and Auf Wiedersehen, Pet.
In 1990 Kenny starred alongside Liam Neeson and Billy Connolly in crime film The Big Man.