THE Portugal forward's brother Andre Silva also died in the accident, which took place in the Spanish province of Zamora.
The 26-year-old was also a professional footballer, with Portuguese second-tier club Penafiel.
The Guardia Civil has told BBC Sport that Jota and his brother died at about 00:30 local time on Thursday.
They said that their car, a Lamborghini, left the road due to a tyre blowout while overtaking another vehicle and then caught fire.
Jota married his long-term partner Rute Cardoso, with whom he had three children, just last month.
He recently posted pictures on social media
, external of the ceremony, which took place on 22 June.
Jota helped Liverpool win the Premier League title last season and also played for Portugal as they beat Spain in the final of the Nations League in June.
"The Portuguese Football Federation (FPF) and all of Portuguese football are completely devastated," read a FPF statement.
"Much more than an amazing player, with almost 50 international appearances, Diogo Jota was an extraordinary person, respected by all team-mates and opponents, someone with an infectious joy and a reference in the community itself.
"We have lost two champions. The passing of Diogo and Andre Silva represents irreparable losses for Portuguese football, and we will do everything to honor their legacy daily."
The FPF has requested that European football's governing body Uefa observe a minute's silence before Portugal's Women's Euros game against Spain on Thursday.
Jota began his professional career with Pacos de Ferreira before joining Atletico Madrid in 2016 and he spent the 2016-17 season on loan with Porto, where his brother was a youth player.
"FC Porto is in mourning," read a club statement.
"It is with shock and deep sorrow that we send our heartfelt condolences to the family and friends of Diogo Jota and his brother Andre Silva. Rest in
After leaving Porto in 2017, Andrew Silva spent time with the youth academies at three other Portuguese clubs before joining Gondomar in 2021.
He joined Penafiel on a free transfer in 2023 and made 59 league appearances over the past two seasons.
Jota scored 14 goals in 49 appearances for Portugal, helping them win the Nations League in 2019 and 2025.
Portugal's prime minister Luis Montenegro said: "The news of the death of Diogo Jota, an athlete who greatly honoured Portugal's name, and his brother is unexpected and tragic.
"I extend my deepest condolences to their family. It is a sad day for football and for national and international sports."
Jota has been playing in England since 2017, when he joined Wolves on loan from Atletico before making a permanent switch in 2018.
The Football Association said: "We are devastated.
"Our thoughts and deepest condolences are with Diogo's family, friends and team-mates at Liverpool and Portugal."
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