The 61-year-old was visiting the underwater Atlantic Museum this morning when he became unwell and was rushed to dry land on a rescue boat where he was given first aid.
Paramedics were alerted as they were on their way to the Marina Rubicon yacht harbour in Playa Blanca in the south of the island five minutes away.
But he suffered cardiac arrest on the way according to local authorities and was pronounced dead after reaching the shoreline.
Local reports said the dead man had been diving with a local club and was with his schoolboy nephew at the time.
The tragedy was the third this year involving a British diver in the Canary Islands.
On September 16 ex 2 Para soldier John Walker, 54, from Consett, Co Durham, died near the same spot while he was preparing to visit the Atlantic Museum.
A week later keep-fit enthusiast Justine Barringer, 44, died after getting into difficulties while diving off Veneguera Beach in Gran Canaria.
She was pronounced dead at nearby Puerto de Mogan where she was taken by boat despite the efforts of paramedics to revive her after she went into cardiac arrest.
Friend Veronica Clinton took to Facebook after the tragedy to say: “I have just received some very sad news.
“A friend of the family, Justine Barringer, has lost her life scuba diving in Gran Canaria. She was young and in good shape. I find it impossible to believe. She was the life and soul of parties. Just 44 years old.”
The latest Brit to lose his life while diving is thought to be an expat. Like Mr Walker he has been described as an experienced diver.
It is not known where in the UK he is originally from.
Tests will now take place to determine the cause of death although police are understood to be looking at the possibility it may be related to possible cardiovascular problems he is said to have suffered from.
The incident happened just after 10am local time today.
A spokesman for a local emergency services coordination centre said in a statement: “We received a call from a volunteer rescue association called EMERLAN to say that a boat from a dive centre was taking a diver who wasn’t responding out of the water.
“The required emergency response was immediately activated.
“Ambulance staff confirmed the patient was in cardiac arrest when they arrived at the scene and performed CPR on him without success. He was pronounced dead at the scene.”
A Civil Guard source said the British man, named only by his initials L.G, had been around 40 feet underwater when he became unwell.
The Atlantic Museum, which was officially opened in January, is Europe’s first underwater museum.
It features more than 300 life-size human figures by British sculptor Jason deCaires Taylor.