John Avildsen, who directed Rocky and The Karate Kid, two dark-horse underdog fables that went on to become Hollywood franchises, has died at 81.

Avildsen's son Anthony said his father died on Friday in Los Angeles from pancreatic cancer.

"He was a pretty extraordinary man in my estimation. He was super talented and very driven and very stubborn and that was to his detriment but also often to his benefit," he said.

The Directors Guild of America paid tribute to Alvidsen, saying: "Throughout the decades, his rousing portrayals of victory, courage and emotion captured the hearts of generations of Americans."

Avildsen took a chance on Rocky, written by and starring the then-unknown Sylvester Stallone as a struggling boxer.

But the 1976 film became a phenomenon that won Oscars for best picture as well as for Avildsen as director and editing, and was nominated for seven others.

Legendary director Frank Capra loved it, telling The New York Times in 1977: "When I saw it, I said, 'Boy, that's a picture I wish I had made'. "

For his part, Avildsen said Capra, who also championed underdogs on film, was his favourite director.

Stallone had written the script and wanted Avildsen to direct it, but Avildsen was already working on another film, but suddenly the production company ran out of money and that film was cancelled.

A friend sent Avildsen the Rocky script.

"On page three, this guy (Rocky) is talking to his turtles, and I was hooked," Avildsen remarked.

"It was a great character study."

Avildsen agreed to direct Rocky even though he knew nothing about boxing.

The film was shot on a tight budget, less than one million dollars, and it was completed in 28 days.

"The first time I showed it to 40 or 50 friends, they all freaked out, so that was encouraging," Avildsen recalled.

"But I guess when I saw the lines around the block, it began to take on a reality."

Five sequels followed, but Avildsen turned them down until the fourth, Rocky V, in 1990.

He said he considered it a good script and liked the fact that Rocky was slated to die.

But during the shooting the producers decided Rocky had to live.

"You don't kill off your corporate assets," Avildsen commented.

The fifth sequel, Rocky Balboa, came out in 2006.

The Karate Kid was another surprise hit in 1984, telling the story of a bullied teenager played by Ralph Macchio who learns about self-confidence through the study of karate with the help of a Japanese handyman (Noryuki "Pat" Morita).

Released in the summer of 1984, The Karate Kid attracted millions of youngsters and brought Morita, a veteran performer best known for his TV roles, an Oscar nomination as best supporting actor.

"As soon as the producers saw the business it was doing, they wanted to do it again," Avildsen said in a 1986 interview.

"I was very apprehensive. I didn't want to do a sequel because this was a very tough act to follow."

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