The fighter's manager Tommy Gilmour said Towell had suffered a 'serious injury' and was breathing via the use of a ventilator in hospital with his family by his bedside.
Sadly, he passed away.
The clash between Towell and Evans took place at the Radisson Blu Hotel in Glasgow and had been screened live on STV.
Evans took the upper hand almost immediately, knocking Towell to the canvas in the first round.
Towell got back to his feet and continued but after Evans landed more blows as the fight progressed, referee Victor Loughlin stepped in.
Loughlin stopped the bout in the fifth, Towell subsequently rushed to hospital with fears over his health.
Towell's boxing club St Andrews took to Twitter to pay tribute to their fighter, saying: Within the last hour Mike Towell passed away - he will always be in our hearts #RIPIronMike.'
Welshman Evans said he was "in bits" yesterday as Towell fought for his life.
"I am devastated and all my thoughts are with Mike and his family,' he said yesterday.
"He is such a fantastic fighter, you are happy to win but all I wanted to do was get the victory. Not this.
"I never wanted to see my opponent get stretchered out of the ring.
"Who would ever want to see that sight?
"That was so hard for his family and my heart goes out to them.
"He is a true warrior who has brought such excitement to Scottish boxing."
Boxing legend Barry McGuigan, just hours before Towell died, tweeted: "God be good to Mike the Dundee boxer who collapsed after his fight last night.
"My thoughts and prayers are with him and his family."