In a statement released on behalf of her family, St Luke's Care said it was sad to advise of her passing in the early hours of the morning. She had been a resident of Lulworth House nursing home in Elizabeth Bay for several years.

The statement said arrangements had been made for a private funeral.

"In due course an announcement will be made regarding a celebration of Dame Leonie's life which the broader community will be welcome to attend," the statement says.

An influential and at times controversial figure in Australian public life, Dame Leonie served as chancellor of the University of Sydney for a decade before a long power struggle led to her removal by the university's senate.

Born and educated in Melbourne, Dame Leonie studied at Oxford University and returned to Australia with her South African husband, Harry Kramer, with whom she had two daughters.

Her long academic career began at the University of NSW, and then as professor of Australian literature at Sydney University, Australia's first female professor of English. She was also a visiting professor at Harvard University.

Her critical writing included the works of Henry Handel Richardson and she edited the Oxford History of Australian History.

She chaired the judging panel of the Miles Franklin Literary Award that gave the 1995 prize to The Hand that Signed the Paper by Helen Demidenko, who was later revealed as a fake Ukrainian writer.

Her disapproval of Patrick White and conservative view of Australian literature as a subset of English literature bemused some colleagues and critics.

Both imperious and flirtatious, Dame Leonie could be lively company and enjoyed her position in Sydney society, although she also found it provincial.

She became the first woman to chair the board of the ABC in 1982, and served on other public bodies and company boards.

The Vice-Chancellor and Principal of the University of Sydney, Michael Spence, issued a statement that said the university community was saddened to hear of her passing.

"A dedicated and resonating figure in the University, Dame Leonie was always a powerful champion of effective education," he said.

"Her early years as an academic were built around her passion for Australian literature, with her books and fearless intellectual rigour stimulating vigorous debate in the arts community."

Dr Spence said that in Dame Leonie "we have not only lost a valued member of the university community, but also a significant figure in public life".

"The university expresses its condolences to Dame Leonie's family and her large community.

"Her talent and unique energy in this field led to her appointment, in 1968, as professor of Australian literature at the University of Sydney," he said.