"Tom died last night" (Tuesday) at the specialist Royal Hospital for Neuro-disability in Putney, southwest London, his mother Jocelyn Hurndall said in a statement.
Hurndall, 22, an activist with the International Solidarity Movement, was hit in the head and critically wounded by sniper fire in the Rafah refugee camp on April 11 and was subsequently pronounced clinically dead.
He was airlifted to London where he remained in a vegetative state in hospital.
Palestinian medics and witnesses said Hurndall was trying to pull two Palestinian children out of danger when shots were deliberately fired from a nearby Israeli army watchtower.
In a statement on December 31, the Israeli army acknowledged that one of its soldiers -- who it did not identify -- had been arrested in connection with the shooting of the Manchester university student.
It said the soldier had initially claimed that he returned fire at a man armed with a pistol.
"However, following an intensive investigation by the military police of the Southern Command, the soldier admitted to shooting in proximity of an unarmed civilian in order to deter him," it added.
The Israeli army had announced in late October that it was opening an investigation into the shooting.
Speaking on BBC radio, Hurndall's sister Sophie Hurndall said the family felt "a great sadness", as well as "a sense of relief" that his suffering was finally over.
But she held out hope that justice will eventually be done.
"The army has been, the whole way along with this, trying to get itself off the hook and its soldiers," she said.
"In my mind, there is absolutely no question that it was absolutely premeditated."
"We know (the soldier) was using a telescopic lens. We know that he's lied consistently. We know that other soldiers lie for him. We know that he knew that Tom was wearing an orange jacket. And he's confessed that he knew Tom was unarmed at the time."
Carl Arrindell, a spokesman for the Hurndall family, said: "The family are absolutely determined to pursue this soldier."
"They want to make sure Tom's killer is prosecuted for murder and not for manslaughter," he said. "The family will be pressing its lawyers to ensure that the appropriate charge of murder is applied in this case."
He added: "Tom's family have made it clear that they will be satisfied with nothing less than the full prosecution for the person responsible for murdering Tom and they expect the imposition of the maximum penalty in this respect."
"They additionally expect that the harshest penalties should be imposed on all those involved in the obstruction of justice."
