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Densely-populated Dharavi is famous as one of the largest slums in Asia.
The man, who lived in a building constructed under the Slum Rehabilitation Authority (SRA) scheme, had no foreign travel history, said a health official of the Brihanmumbai Municipal Corporation.
After he died at nearby government-run Sion Hospital, some 300 tenements in the building and around 30 shops were cordoned off by police.
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The deceased had a garment shop at AKG Nagar in Dharavi, the official said.
Mumbai has recorded over 180 coronavirus cases and about a dozen deaths of COVID-19 patients so far.