He was popularly known for acting in big budget films like Hello Brother, Hungama and Hera Pheri.
The 62-year-old veteran actor died of heart attack around 12.30 am today in Mumbai.
Khan was having dinner at Sheesha Restaurant when he felt uneasiness in the chest. He was rushed to Holy Cross hospital in Bandra but doctors declared him dead on his arrival. Reports say doctors tried to revive him for atleast half an hour.
Khan's body will be kept in the hospital till his son Asad arrives from Croatia. He works for Etihad Airlines and is based in Abu Dhabi. The funeral will be held at Narialwadi Kabaristan, Byculla, after 4 p.m on Thursday.
Khan had acted in more than 90 films.
Razak Khan, who gained fame playing the role of Manikchand in the movie Baadshah, played the role of a goon in TV series 'R K Laxman Ki Duniya' that was aired on SAB TV. He was also seen on 'Comedy Nights with Kapil' on Colors television.