Powell played for Wales, Blackpool, QPR and Aston Villa, after starting his working life in the mines of South Wales. A tough tackler, he moved to Aston Villa for a fee of £17,000 in 1948, and while at Blackpool he struck up his friendship with Sir Stanley Matthews, who went on to be best man at his wedding.
He managed Port Vale, Bradford and Carlisle and had spells coaching at Bath and also with PAOK in Greece, before joining the University of Bath as a football coach in the early 1970s.
In 2004 he was inducted into the Welsh Sports Hall of Fame and in 2006 his status as the world's oldest working football coach was recognised as a Guinness World Record.
Powell was made an MBE in the 2008 New Year's Honours List and he finally retired in May 2010, aged 93.
The University of Bath said Powell died on Monday night after a short illness.
Deputy vice-chancellor Professor Kevin Edge said: "Ivor was an outstanding individual, a real character and a tremendous inspiration to countless generations of students and to his many colleagues at the university. He will be sadly missed. We would like to extend our sincere condolences to Ivor's family and friends."
A QPR spokesman said: "The club is desperately saddened to learn of the passing of former half-back Ivor Powell.
"Powell passed away last night, aged 96. He made 159 appearances for Rangers in a 12-year spell that was interrupted by the War."
The spokesman added: "The club would like to extend its deepest condolences to Ivor's family and friends at this sad time. May he rest in peace."