According to "The Tennessean," the 71-year-old singer was under hospice care and had suffered from emphysema for several years.
Reed was well known as an excellent musician as well as a singer and songwriter.
Most of his best-known songs were funny, such as "When You're Hot, You're Hot ," "Tupelo Mississippi Flash" and "She Got The Goldmine (I Got the Shaft)."
Reed also made his mark as an actor, starring in the three "Smokey and the Bandit" movies with Burt Reynolds. He wrote and recorded the movie's theme song "East Bound and Down."
Reed was in a number of other films including "The Waterboy," "Gator" and "Concrete Cowboys."
Reed wrote songs that were recorded by Elvis, Porter Wagoner, Brenda Lee, Johnny Cash, Waylon Jennings, Bobby Bare and others. He was a much-in-demand guitar player for recording sessions in Nashville and counted among his fans the late Chet Atkins, who was also a good friend.
In his later years Reed became an advocate for veterans to receive better care. A private funeral was held in Nashville on Wednesday. Reed is survived by his wife Priscilla and two daughters.