The 18-year-old fell heavily on Thursday and was airlifted to hospital by a helicopter with serious head injuries and was said to be in a critical condition.
"It is with great sadness that the Union Cycliste Internationale (UCI) and the Organising Committee of the 2024 UCI Road and Para-cycling Road World Championships today learned the tragic news of the death of young Swiss cyclist Muriel Furrer," a statement read.
"With the passing of Muriel Furrer, the international cycling community loses a rider with a bright future ahead of her. We offer sincere condolences to Muriel Furrer's family, friends and her Federation Swiss Cycling."
The UCI said on Thursday there were no "established facts" as to how the accident occurred while in a later statement, before Furrer's death was announced, it said the world championships would continue as planned.
"The 2024 UCI Road and Para-cycling Road World Championships in Zurich, Switzerland, will continue according to the race programme," a statement read on Friday.
"The continuation of the event is taking place with the agreement and in accordance with the wishes of the family of Muriel Furrer. The family would like the 2024 UCI Road World Championships to continue as planned."
Four para-cycling races were scheduled for Friday while the women's elite road race is on Saturday. The men's elite road race will take place on Sunday.
Swiss president Viola Amherd offered her condolences on X.
"I am shocked by the death of the young U-19 rider Muriel Furrer after her accident at the Cycling World Championships in Zurich," she said. "I offer my sincere condolences to her family. My thoughts are with the entire cycling family."
Furrer finished 44th in the junior women's time trial earlier in the week.