The contents of Ivan Milat's last letter has been revealed with the serial killer delivering one final insult to Australians even after his death.

Milat died early yesterday morning in a hospital bed at Sydney's Long Bay Jail but two days before he took his final breath, the notorious killer penned a letter to his brother Bill.

Bill - like most of the Milat family - has always maintained Ivan is innocent of the backpacker murders.

Speaking to 10 News First, Bill narrated portions of the letter, revealing his brother wanted the taxpayer to fund his funeral.

"Please don't pay for my funeral services or contribute in any way," the killer wrote from his death bed.

"(Corrective Services NSW) to fund it all. A pauper's burial or whatever is suitable. I have assured the commissioner of CS of NSW of my wishes."

Milat's letter, published in full below, also requested all of his belongings go to Bill.

Bill reads his brother’s final letter. Picture: 10 News

Bill, who told the program the family wanted a private cremation anyway, agreed with his brother's sentiment.

"Corrective Services had him all this time so they can foot the bill," Bill said.

"(The taxpayer) can be outraged. It was the taxpayer that put him in there, it's the taxpayer that has to pay, and remember I'm one of them too."

Bill was handed the sealed letter from his killer brother on their final visit together and was told not to open it until his death.

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Despite Ivan's wishes for a funeral, Bill said there would only be a private cremation - and no gravestone.

"If we have a funeral, every kook in the country will be there," he told the program.

"If he was buried, they'll desecrate the grave and make a mess of it. So we're having none of that."

Corrective Services confirmed they would not be giving any money to the Milat family for a funeral.

Proclaiming his innocence right to the end, Milat signed off his final letter "innocent".

Ivan Milat's final signature. Picture: 10 News

Terminally ill Milat had been under heavy guard in the intensive care unit of Prince of Wales Hospital, in Sydney's east, but was returned to jail last week after it became clear death was imminent.

NSW Counter Terrorism and Corrections Minister Anthony Roberts told The Daily Telegraph Milat had shown no remorse for his crimes and deserved no mercy on his deathbed, adding he could "rot in hell".

"He was sentenced to die in jail and he was going to die in jail," Mr Roberts said.

"I wasn't going to have him take up a public hospital bed. Both the commissioner and I were of that opinion.

"We had him removed from a hospital and sent back to Long Bay Jail. He can rot in hell.

"He showed no remorse. We ensured the sentence was carried out."

Milat had been in prison since his 1994 arrest for the murders of seven backpackers whose remains were found in the Belanglo State Forest, an hour's drive north of Goulburn.

He was convicted in 1996 and given seven consecutive life sentences but detectives always feared his murder tally was much higher, with up to six more victims whose bodies have never been found.

Despite pleas from police and families of his suspected victims, Milat took his secrets to the grave.

A Corrective Services spokesman told news.com.au the serial killer was "found dead in his cell" just after 4am on Sunday.

Milat was diagnosed with oesophagus and stomach cancer and given three months to live back in May, taking a turn for the worse on October 14.

Convicted murderer Ivan Milat next to his seven victims. Picture: Rick Rycroft

THE LETTER IN FULL

Hello and may all be well with both of you and your family.

Things are fairly crook with me but while I in mind and senses I would like you to know that years ago you were nominated as my next of kin contact person by CS NSW, that's Corrective Services New South Wales.

Due to my health issues, I wish to leave you all I have.

All funds, moneys held in my prison account and to possessions of all other items of property, legal and trial and appeal reviews documents held on my behalf by Corrective Services NSW. Above all I request be given to William [Address] I thank you for this.

I realise and am aware that this letter my wishes may not be legal will and testament CS NSW Government Services and probate procedures may come into play I believe.

But hope this letter may clearly show my intentions and wishes that you Bill receive my funds and legal documents.

Keep this letter to show it to your solicitor that you may sole beneficiary.

Please don't pay for my funeral services or contribute in any way.

CS NSW to fund it all.

A pauper's burial or whatever is suitable. I have assured the commissioner of CS of NSW of my wishes.

I am innocent of the crimes convicted of.

24/10/2019

Ivan Milat

Innocent