THE Victorian Government has offered a state funeral to the family of Collingwood legend Lou Richards.

Richards passed away peacefully on Monday at a Melbourne nursing home. He was 94.

"Lou Richards was a legend of our game and an iconic figure for Victoria," a government statement said.

"The government has offered a state funeral to Lou's family.

"The family is considering this offer - it will be their decision."

Daughter Nicole Morrison told 3AW she would speak with other family members before making a decision.

"I think that would be really proud to think that someone ... who grew up in Collingwood and lived most of his life in Abbotsford would be offered at state funeral," she said.

"I think that would be a great honour and I'm really thankful for the Premier for offering that to us. We are very, very proud of that."

The AFL has hailed Richards for his towering contribution to the game.

It said Richards sat in the company of Ted Whitten and Ron Barassi as one of the largest figures - on and off the field - in the history of Australian football.

An emotional Magpies president Eddie McGuire said "no man has done more for our game than Lou Richards".

"He was a quintessential Collingwood man who spoke to the entire football world," McGuire said.

AFL chief executive Gillon McLachlan said the game owed a huge debt to Richards.

He played 250 games for Collingwood, including captaining the 1953 premiership side, and was an inaugural member of the Australian Football Hall of Fame.

But it was in the media that Richards found even greater fame.