Mourners wept, raised their arms and marched behind the flag-draped casket of former President José Mujica on Wednesday as thousands bid a poignant farewell to the iconic leader in the Uruguayan capital.

The Uruguayan government has declared three days of national mourning in honor of the late former President Jose "Pepe" Mujica.

Jose Mujica, a one-time guerrilla and later president of Uruguay who drove a beat-up VW Beetle and enacted progressive reforms that carried his reputation well beyond South America, has died aged 89.