Davey Lambert crashed on Monday and passed away on Tuesday
The 48-year-old from Gateshead crashed on the third lap of the race at Greeba Castle on Monday.
He was treated at the scene before being airlifted to Nobles Hospital.
Lambert was subsequently transferred to Aintree Hospital in Liverpool where he died on Tuesday.
“He went out of this world in exactly the way he would have wanted, doing what he loved,” a statement from his family read.
The Isle of Man TT has claimed more than 250 lives of racers over the years
“He was a big man with an even bigger heart, who will be sorely missed by so many.
“As a family we would like to that everyone for their kind words and support.”
A statement from the organisers of the races also issued a statement: "ACU Events Ltd wishes to pass on their deepest sympathy to his partner Tracey, his family and friends."
The TT races around the island off the north-west coast of England between Britain and Ireland have been run since 1907 and rank among the most dangerous in motorsport.
Including the Manx Grand Prix races held later in the year, there have been more than 250 rider fatalities on the Snaefell course since 1911.
This latest accident also caused racing fans to reconsider the safety of the event.
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"Sorry to hear of Davey Lambert's death – condolences to friends + family," Kathryn Johnson said on Twitter.
"Time to end road racing now?"