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Yadav (60) breathed his last around 1 AM at the All India Institute of Medical Sciences (AIIMS), Delhi, where he had been admitted for treatment of stomach-related ailments, they said.
He is survived by wife, two sons and two daughters.
The last rites will be performed in his hometown Durg tomorrow.
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Yadav contributed actively to overall development of the state and was always with people in their happiness and sorrow, the governor said in his message.
The chief minister said the state had lost a popular mass leader who worked tirelessly for the uplift of the downtrodden.
Yadav was first elected as an MLA from Durg in 1998 (when it was part of the undivided Madhya Pradesh) and again in 2003 and 2008.
He was part of the Raman Singh cabinet for ten years from 2003 to 2013, and served as the minister of labour, water resources, panchayat and rural development and higher education.