Michelle Henderson passed away yesterday at the age of 28 after a two-year battle with cervical cancer.
The 68-year-old, who played most of his career with Rangers, said a "bright light" had gone out of his life.
Michelle was diagnosed with cancer on October 8, 2010, when she was just 26.
Despite her ordeal she set up the Michelle Henderson Cervical Cancer Trust to raise funds to help others.
The charity raised thousands for the cause through events including charity football matches in which her father competed.
Before her death she said: "After going through this I just feel as though I want to give a little back and help in any way I can."
Michelle, who had an honours degree in journalism, wrote a diary charting her battle with cancer for a Sunday newspaper.
Cervical cancer is the second most common cancer among women under 35 in the UK.
Willie, who lives in Broxburn, West Lothian, paid tribute to his daughter's bravery.
In a joint statement with his wife Veronica he said: "We are greatly saddened to announce that at the age of only 28 our dear and beloved daughter Michelle passed away this morning after a long and difficult battle with cancer.
"She fought that battle very bravely and did as much as she could to heighten awareness of the illness she faced.
"Michelle fought very hard and we supported her throughout her difficult journey.
"Michelle was a loving daughter, sister and grand-daughter and will be greatly missed.
"A bright light in our lives went out today but Michelle will live on forever in our hearts."
Her dad, nicknamed "Wee Willie", was one of Rangers' greatest wingers and also played for his country at international level. He made his debut for the club in 1960, aged 16.
His time there saw the club win the Scottish league twice, the Scottish Cup four times and the League Cup twice.
He was also part of the Rangers team that reached the finals of the 1960-61 and 1966-67 Cup Winners' Cup competitions and part of the campaign that brought home the trophy in the 1971/72 season.