The super-fit 57-year-old from Well Head rode to victory in his 12th appearance in the competition which was held at Santa Stefano Belbo between Milan and Turin in Italy.
In securing his seventh title, Daly emulated the number of Tour de France successes of his sporting idol Lance Armstrong and, like the great American rider, is considering calling it a day.
Daly has family in New Zealand and he has said that he would like to spend more time with them and eventually move there.
"I still have to make a decision, but it might be the last time I compete," said Daly, who won six consecutive world titles between 2000 and 2005.
"I wasn't able to compete for the last two years and to be honest I just wanted to go back there this time and get my crown back.
"In actual fact I have eight successes because I also won a combined event which includes the results from both the mountain bike and road stages."
Daly beat more than 300 competitiors over a tough course and admitted his training around the hills of Calderdale had stood him in good stead.
He had a real scare when his front brake broke on a steep descent, but he was able to overcome that with a combination of skill and experience.
"It is just a fantastic event and so well supported. It is always a great feeling to stand on that podium with the national anthem playing."
Although he has still to decide on his participation in the future, Daly has pencilled in an appearance at the World Firefighter Games in Liverpool this summer.
"I won my event the last time the games were held in this country - in Sheffield - and I would like to have a go at winning it again," said Daly.