Peter Falconio's killer did not disclose location of body before dying
Mr Falconio and Ms Lees, both from Yorkshire, were travelling across the country in a camper van when they were ambushed by Murdoch on the Stuart Highway, an isolated road that runs through the centre of Australia.
Murdoch was convicted and sentenced to life imprisonment without parole for at least 28 years.
Murdoch, 67, was diagnosed with terminal throat cancer in 2019 and was moved to palliative care from Alice Springs Correctional Centre last month, according to local media reports.
The Northern Territory Department of Corrections confirmed that Murdoch died in hospital in Alice Springs.
A spokesperson said: 'The death will be subject to investigation by the Northern Territory Coroner.
'No further comment at this time.'
Northern Territory Police Force said Murdoch did not provide any fresh information about the location of Mr Falconio's body prior to his death.
In a statement the force said: 'The Northern Territory Police Force acknowledges the death of Bradley John Murdoch, the man convicted of the 2001 murder of British backpacker Peter Falconio near Barrow Creek.
'It is deeply regrettable that Murdoch has died without, as far as we are aware, ever disclosing the location of Peter Falconio's remains.
'His silence has denied the Falconio family the closure they have so long deserved.
'Our thoughts are with the Falconio family in the United Kingdom, whose grief continues.'
The statement continued: 'The Northern Territory Police Force remains committed to resolving this final piece of the investigation.
'We continue to appeal to anyone who may have information that could lead us to Peter Falconio's remains to come forward, no matter how small the detail may seem.
'A reward of up to 500,000 Australia dollars (£243,650) is available to anyone providing information that leads to the discovery of Peter Falconio's remains.'
Mr Falconio and Ms Lees had been driving near the tiny settlement of Barrow Creek, around 188 miles north of Alice Springs, when Murdoch pulled up beside them claiming to have seen sparks coming from their van.
He shot Mr Falconio in the head as he inspected the vehicle, before forcing Ms Lees into his vehicle and binding her wrists with cable ties.
She managed to escape, hiding in the Outback for hours before flagging down a passing truck.
During the trial, prosecutors argued that Murdoch was likely to have disposed of the backpacker's body somewhere in the vast, remote expanse of desert between Alice Springs and Broome, covering more than 1,200 miles.
Despite repeated searches, Mr Falconio's body has never been found.
Ms Lees, who returned to the UK, told Australian current affairs programme 60 Minutes in 2017 that she still wanted to 'bring him home'.
'Pete lost his life on that night, but I lost mine too,' she said at the time.
'I'll never be fully at peace if Pete's not found, but I accept that that is a possibility.'
Murdoch lodged several unsuccessful appeals over the years, with Australia's highest court refusing to hear his case in 2007.
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