The animated film director, animation artist, and occasional voice actor was 60-years-old when he passed away on Friday.
Kelly's spokesperson Nancy Newhouse Porter of Newhouse Porter Hubbard confirmed the news, revealing he passed away at his home in Encino, California.
Nancy told Deadline: “He was one of the most admired and beloved people in the industry."
She added: “It’s heartbreaking for everyone.”
While TMZ report that the multi-award nominated director passed away "peacefully" following his battle with stage 4 cancer.
Kelly directed the 2004 film Shrek 2 – featuring the voice work of Mike Myers and Cameron Diaz about trolls living in a fairy tale world.
Kelly himself also provided "additional voices" in the hit cartoon comedy.
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