The talented centre made his Wales debut against Italy in Rome back in 2003 and would go on to win 18 caps playing a prominent role in their famous win over Australia in 2006.
Watkin began his career with Newport before joining the Scarlets. He played 150 times for the Scarlets between 2002 and 2008, scoring 42 tries, and was a key member of the side which won the Celtic League in 2003-04.
After leaving Llanelli he represented Gloucester in the English Premiership before ending his professional career back home with the Dragons.
A statement from the Scarlets said: “The Scarlets family are deeply saddened by the news that our former player Matthew Watkins has passed away at the age of 41.
“He is fondly remembered as a silky-skilled, creative midfielder, who was a hugely popular figure among our supporters, the playing squad and staff at Stradey.
“The thoughts of everyone at Scarlets Rugby are with Matthew’s wife Stacey, his sons Siôr and Tal, family and friends at this sad time.”
Dragons said: “Everyone at Dragons Rugby is deeply saddened at the passing of our former player Matthew J Watkins.
“Matthew will be missed by so many and our sincere condolences go out to Matthew’s wife Stacey, his sons Siôr and Tal, family and friends.
“The thoughts of everyone at Dragons Rugby are with them all at this very sad time.”
Tributes have been pouring in from across the rugby world for the much-loved Watkins.
Wales rugby legend Jonathan Davies tweeted: “RIP Matthew. What a lovely guy who took on cancer with courage and always had a smile on his face. @Velindre. Lived life to the full and was always smiling. Thoughts and prayers are with his family and close friends. #Putsthingsintoperspective”
Former Wales international Ian Gough added: “Heart breaking news this morning about a legend of a bloke that has lost his long fight with a horrible disease. As long as I live will the absolute character that is MJ be in my memories. Nos Da mate.”