From Diablo Wiki
Wirt sells items, but only one at a time, and he'll only show it to you after his infamous 50 gold fee.
Wirt's graft engendered extreme hostility in most Diablo I players, and his fate as a gold-popping corpse in Diablo II was a form of fan service. He was killed in Diablo II by the demons who pillaged Tristram. His corpse can still be found in the east part of town (now on the east side of the river). Wirt's Leg can be found if his corpse is searched, together with the afore-mentioned gold-popping.
Wirt in Diablo 3?
- IGN: Does that mean things like Wirt popping back up? Obviously Cain is going to be in there...
- Jay Wilson: He's on like his eighth leg by now, right? [laughs] I don't know what we're gonna do with that little bugger. I mean, he's dead, so there's not much we can do with him...
- IGN: You never know, he could come back as undead...
- Jay Wilson: That's true, undead Wirt, that's not a bad idea.
- GamePlanet: Is Wirt really dead?
- Kevin Martens: Well, he's running out of legs...
- Julian Love: Yeah, he's not got too many body parts left. (laughs)
- Kevin Martens: To get Wirt into the game... - there's definitely an intention to bring characters forward from the previous games. I don't think we've yet determined Wirt's fate for Diablo III.
- Julian Love: What would the fans prefer?
Yet another Wirt mention came from Jay Wilson at Gamescon, in August 2010. 
- Jay Wilson: Wirt? I’d like to bring him back in some form, but we’ve not come up with an original idea for it.
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