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Scrum-half Gareth Jones, 28, was hurt at a ruck during a Premier Division game against Cardiff in the Arms Park, which Neath lost.
The Pontypridd-born decorator leaves a wife and two children.
"It is with deep regret that Neath Rugby have to announce that scrum-half Gareth Jones passed away peacefully this afternoon," said a club statement.
Jones, who previously played for Glyncoch, Beddau and Pontypridd, made his debut for Neath against Newport in 2006.
He won a league title with the Welsh All Blacks and was also a Konica Minolta Cup winner with Pontypridd.
Medical staff treated Jones on the pitch for around 10 minutes during the Cardiff-Neath match in April and he was then transferred to hospital, where scans revealed a significant injury to his neck.
Jones had been in intensive care at the University Hospital of Wales in Cardiff since the incident, where he underwent surgery for his injuries and medical complications.
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My Memory 'Your beautiful...'
Tim Russell Jun 22, 2008
Didn't know you well, but knew you enough to understand you will be missed by all who met you!
Rest in peace!
RIP snid
Dean Jun 19, 2008
You left us doing something you loved and left your legacy with a great rugby club such as Neath. You will be missed. Dean
Strong and Beautiful!
Jude Jun 18, 2008