Mourners wept, raised their arms and marched behind the flag-draped casket of former President José Mujica on Wednesday as thousands bid a poignant farewell to the iconic leader in the Uruguayan capital.

Jose Mujica, a one-time guerrilla and later president of Uruguay who drove a beat-up VW Beetle and enacted progressive reforms that carried his reputation well beyond South America, has died aged 89.

The former guerrilla who governed Uruguay from 2010 to 2015 earned his nickname because of his modest lifestyle.