Towell was knocked down in the opening round of his bout by Welshman Dale Evans and referee Victor Loughlin eventually stopped the contest in the fifth. The Dundee fighter received treatment in the ring before being taken to hospital
St Andrews Sporting Club, which organised the fight, said early on Saturday that Towell had died.
"Within the last hour Mike Towell passed away - he will always be in our hears #RIPIronMike," it said on Twitter.
After the fight, Evans released a statement saying he was "devastated" to see Towell being taken from the ring on a stretcher.
"The aftermath of the fight is so hard to take in but I just want people to know that every thought I have today is with Mike Towell's family," he said.
"He is a true warrior who has brought such excitement to Scottish boxing."
(Writing by Peter Rutherford; Editing by John O'Brien)
