Nicknamed the "Hockey Professor" due to his tactical skills, Sandlin died at his home in Gavle in central Sweden, said Lena Hedman Sandlin.
The cause of death was not immediately clear, but Sandlin had recently been released from a hospital after receiving treatment for his heart.
Sweden's win at the 1987 worlds was the country's first victory in the tournament in 25 years. Sandlin also won seven Swedish championships with five different teams in the national league.
"It's an incredible hockey leader that has left us. One of Sweden's all-time best coaches," Swedish Ice hockey Association secretary-general Robert Falck said. "He was called the 'Hockey Professor' because he always had new thoughts. He was innovative and always had a new take on things."
Sandlin coached the national team twice, from 1978-80 and 1986-90. He is survived by his wife Birgitta, children Tomas, Lena and Lotta and four grandchildren.