LOS ANGELES (AP) _ Actress Madge Kennedy, who starred with W.C. Fields on stage in ''Poppy'' in 1923 and with Dustin Hoffman in the film ''Marathon Man'' in 1976, has died at the age of 96.

Miss Kennedy died Tuesday at the Motion Picture and Television Country House and Hospital in suburban Woodland Hills. There are no immediate survivors.

Miss Kennedy was considered the last of the Goldwyn glamour stars that included Geraldine Farrar, Mabel Normand, Mae Marsh and Pauline Frederick.

She began her acting career on the Broadway stage in 1910, starring in many of the ''bedroom romps'' considered scandalous at the time.

In 1923 she portrayed W.C. Fields' daughter in the play ''Poppy,'' receiving billing over him.

She soon was placed under a film contract by Samuel Goldwyn, and her film debut came in 1917 in ''Baby Mine.'' She made her last silent film in 1926, when she quit movies to care for her mother.

She managed a few New York stage shows before returning to Hollywood in 1952. She resumed her film career and appeared in ''The Marrying Kind'' and ''They Shoot Horses, Don't They?''

Her performance as an aging tenant in a shabby rooming house in ''The Day of the Locust'' was praised by critics, and she appeared with Hoffman in the 1976 thriller ''Marathon Man.''