A statement from his office said the 68-year-old died a few hours after being taken ill, but did not give details.
"It is with a heavy heart...that we announce the sudden and untimely death of the president of the Republic of Ghana," the statement said.
Mr Atta Mills has ruled the West African country since 2009.
The BBC's Sammy Darko, who is at the military hospital in Accra, says Mr Atta Mill's voice has been degenerating in the last few months.
A presidential aide said the leader had complained of suffering pains on Monday evening and he died on Tuesday afternoon, Reuters reports.
He had returned to Ghana after visiting the US for medical checks, the news agency says.
Mr Atta Mills came to power after narrowly winning against a candidate from the then governing New Patriotic Party, Nana Akufo-Addo, in polls in December 2008.
He was to run for a second term in December
John Mahama takes over as 4th President of 4th Republic of Ghana
Chief Justice Georgina Theodora Wood on Tuesday night swore into office, Mr. John Dramani Mahama in Parliament as the 4th President of the Fourth Republic of Ghana and Commander-in-Chief of the Ghana Armed Forces.
President John Mahama takes over the remaining term of Prof. John Evans Atta Mills, who died earlier on Tuesday at the 37 Military Hospital after suffering a short illness.
President Mahama until Tuesday was Vice President for the late President Mills.
Parliament was recalled by Speaker of Parliament Joyce Bamford-Addo for an emergency sitting after an earlier meeting in the day, where a letter was read by the speaker informing MP’s of the President’s decision to travel to Nigeria on Tuesday night on an official visit.
Both sides of the political divide wore black and red, to signify their grief.
Mr. Mahama returned to Ghana and, from 1991 to 1996, he worked as the Information, Culture and Research Officer at the Embassy of Japan in Accra.
From there he moved to the nongovernmental agency (NGO) PLAN International's Ghana Country Office, where he worked as International Relations, Sponsorship Communications and Grants Manager.
Mahama was first elected to the Parliament of Ghana in 1996 to represent the Bole/Bamboi Constituency for a four-year term. In April 1997, Mr. Mahama was appointed Deputy Minister of Communications.
He rose to become the substantive Minister of Communications by November 1998; it was a position he held until January 2001 when the National Democratic Congress (NDC), which was the current ruling party, handed over power to the newly elected New Patriotic Party's government.
In 2000, Mahama was re-elected for another four-year term as the Member of Parliament for the Bole/Bamboi Constituency. He was again re-elected in 2004 for a third term. From 2001 to 2004, Mahama served as the Minority Parliamentary Spokesman for Communications. In 2002, he was appointed the Director of Communications for the NDC.
Mahama has seven children. He is married to Lordina Mahama.
It is unclear however, if President John Mahama will be selected by the National Democratic Congress to lead the party in the December elections.
President Jonathan mourns late Ghanaian President
President Goodluck Jonathan has received with shock and immense sadness news of the sudden death of President John Atta Mills of Ghana.
On behalf of himself, the government and people of Nigeria, President Jonathan extends sincere condolences to late President Mill’s family as well as the government and people of Ghana.
The President assures the people of Ghana of the sympathy and solidarity of the people of Nigeria as they mourn late President Mills who did his best during his tenure to carry forward the process of democratic consolidation and socio-economic development in Ghana.
A statement by the Special Adviser, Media and Publicity, Dr Reuben Abati, on Tuesday, says the President prays that God Almighty will grant the late President’s soul eternal rest and bless his successor with the fortitude and wisdom he will need to keep Ghana firmly on the path of peace, stability and progress.
It is President Jonathan’s hope and expectation that the excellent relationship which existed between Nigeria and Ghana during President Mill’s tenure will continue to be strengthened under the new leadership in Ghana in the mutual interest of both countries
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