Dooley scored 62 goals in 61 games for Sheffield Wednesday
Dooley was a legendary football figure in the city and former sports minister Richard Caborn said: "Derek epitomised everything that was good about sport.
"He was the only person I know who brought both Sheffield clubs together. He was respected by both sets of fans."
Dooley played for and managed Wednesday while he worked in several jobs off the field at United.
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Dooley started his career with Lincoln before moving to Wednesday in 1947 where he became a prolific goalscorer.
His career finished in tragic fashion in 1953 when he broke his leg in a collision with Preston goalkeeper George Thompson and he eventually had to have the leg amputated.
Dooley became manager at Hillsborough in 1971 before being sacked on Christmas Eve 1973.
He then moved across the city to United where he was taken on as commercial manager and then went on to perform a variety of roles including chairman before retiring in 2006 just after the club had clinched promotion back to the Premiership.
He was awarded the MBE in 2003 and at the time said: "I never believed I would get this honour. I am fiercely proud of being a Sheffield lad. This honour is a bit special for me."
Sheffield United have decided to honour Dooley by naming their new junior development centre after him.
PLC chairman Kevin McCabe said: "I have spoken to Derek's widow Sylvia and she is overwhelmed and pleased that the academy will be named after Derek.
"Derek was a special guy. He united the city in football. He never forgot the value of grassroots football so we feel this is an appropriate and fitting tribute to a man who was passionate about the game and loved the city, the Blades and the Owls."
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The following deaths were reported yesterday:

===Derek Dooley===

Derek Dooley, who worked for both Sheffield United and Sheffield Wednesday football clubs, died yesterday at the age of 78. In 2003 Dooley was awarded an MBE for his services to football.

Derek McCabe said that "Derek Dooley was a special guy. He united the city in football. He never forgot the value of grassroots football so we feel this is an appropriate and fitting tribute to a man who was passionate about the game and loved the city, the Blades and the Owls."

===Jimmy Faulkner===

Jimmy Faulkner, an Irish guitarist who was said to be one of the country's best guitarists, died yesterday. In his life he has played with many musicians including Luka Bloom, Dónal Lunny, Mary Coughlan and Christy Moore.