The Scottish author announced on 3 April that he was suffering from terminal cancer and was not expected to live for more than a year.
In a blog post on his website, Banks released a statement confirming that he had cancer of the gall bladder, liver and lymph nodes, and that, having almost completed his new novel, he planned to spend his remaining time visiting places that have meant a lot to him.
The new book, The Quarry, is set to be released later this month.
Banks has written two dozen novels, including science fiction under the name Iain M Banks. His most famous works have included The Wasp Factory, The Crow and Complicity.
In a statement, his publisher said he was “an irreplaceable part of the literary world”.
A website set up for friends, family and fans to leave messages for him was inundated with tributes to the writer who also published under the name Iain M Banks for his science fiction titles.
Fellow sci-fi author Ken McLeod paid tribute to Banks.
He told the BBC: “I think he has left us a very significant body of work, both in mainstream literature and science fiction and he’s also left a large gap in the Scottish literary scene as well as the wider English-speaking world.”
Banks will be survived by his wife and partner of seven years, Adele Hartley, whom he married in April after his diagnosis.