The 27-year-old - from Leeds - was diagnosed with cancer of the stomach in March 2005 and despite making a comeback last season needed to take more time out from the game for chemotherapy treatment.
He won only one match last year and fell from fifth in the rankings to 34th.
Hunter turned professional at the age of 16 in 1995 and won his first major title - the Welsh Open - in 1998.
The Leeds player also won the Welsh title in 2002 and picked up the British Open trophy that same year.
Hunter recovered from 7-3 down to beat Fergal O'Brien 10-9 in the 2001 final and fought back from 5-0 adrift to beat Mark Williams 10-9 in the final a year later.
He completed a hat-trick of Masters victories in 2004 when he again came from behind - 7-2 - to beat Ronnie O'Sullivan 10-9.
Hunter would have been 28 this coming Saturday and leaves a wife - Lindsey - and daughter - Evie Rose - who was born on Boxing Day of last year.