Alexis Arquette died Sunday morning surrounded by family and friends ... the family confirms to TMZ.
Alexis' brother, Richmond Arquette says Alexis died at 12:32 AM while listening to David Bowie's, "Starman."
We last ran into Alexis earlier this year -- when she talked to us about Caitlyn Jenner.
David released a statement about Alexis' death, saying, "Never have I had the honor of knowing and loving a funnier more beautiful soul then my brother/sister Alexis."
We're told she'd been battling an illness.