Dunne, 86, played for Ireland 15 times between 1952 and 1960 after making his debut against France in November 1952.
A talented defender, Dunne had emerged with his hometown club Wicklow Town then played in the League of Ireland with Shelbourne before joining Luton Town in July 1950. He made his debut for the Hatters in December 1951 and made more than 300 appearances for the Kenilworth Road outfit.
Dunne later had a stint as player-manager of Dunstable Town before returning to Ireland where he continued his career as a draughtsman.
As a youngster he played inter-county GAA for Wicklow then won Ireland U18 caps in the inaugural UEFA Youth Tournament in London in 1948.
He is survived by wife Helen and children Brendan, Ciaran, Fergus, Deirdre and Nuala and many relatives and friends.
FAI CEO John Delaney paid tribute to Shay Dunne this morning. “We are saddened to hear of the passing of a great football man in Shay Dunne. He served his country well for many years and we were delighted that he was present at the reunion of former internationals who were invited to Croke Park to attend the Ireland-Wales game in 2007. We will pay tribute to him at the game next week and our sympathies are with his family at this sad time,” said Delaney.