The 25-year-old, from Dundee, was rushed to hospital after a fifth-round loss to Welsh fighter Dale Evans in a St Andrew’s Sporting Club fight at Glasgow’s Radisson Blu Hotel.
Towell’s management said he passed away 24 hours later with his family at his bedside.
“Mike collapsed in the ring at the Club after he was stopped in the fifth round and was rushed to hospital after receiving attention from the ringside medical team.
“Sadly ‘Iron’ Mike — who was 25 — could not recover from his injuries and died peacefully late on Friday night with his family at his bedside.”
His death comes less than seven months after a bout between Chris Eubank Jr and Nick Blackwell ended the latter’s career after he suffered bleeding in his skull.
Towell is only the third professional boxer to die in the UK from apparently fight-related injuries in the past 21 years.
The brain injury charity Headway called for boxing to be banned.
“This was a young father in the prime of his life and quite rightly, the focus at this time should be on supporting the family,” said Peter McCabe, Headway’s chief executive.
“But the question remains: how many more lives have to be damaged or lost before this senseless sport is banned? As long as boxing is allowed to continue, more and more young lives will be damaged or lost as a result of opponents deliberately trying to cause neurological harm to each other.”
Also speaking, Paul Flynn, the veteran Labour MP, who had attempted to ban blows to the head in boxing through failed private member’s bills in 1998 and in 2005, described Towell’s death as a tragedy.
“We ought to change the rules in many sports and realise that the head is a very delicate part of the body and to protect it, and minimise the number of blows the brain suffers.”