"Asmatullah Bhetani was killed in a gunfight with security forces in South Waziristan on the night between December 7 and 8," a senior security official told AFP on condition of anonymity.
Another official confirmed Bhetani's death, saying there had been a reward of Rs10 million for his arrest.
He died in Sararogha, a militant stronghold in South Waziristan, where the government carried out a major offensive to crush the Taliban's headquarters last year, the official said, describing him as an "important militant commander.”
He was allegedly close to former Taliban chief Baitullah Mehsud, who was blamed for orchestrating some of the deadliest suicide attacks in Pakistan from 2007 until his death in a US drone strike in August 2009.
"Bhetani had been hiding in Sararogha along with several other militants. A gunfight took place between security forces and Bhetani in which helicopter gunships were used," the official said.
"We had reports that he died in the fighting, but they couldn't be confirmed at the time. Now we have confirmation that he was killed," the official said, referring to intelligence intercepts.
In his mid-30s, Bhetani had been active in the Tank district, but rivals forced him to flee to South Waziristan, where he joined slain Taliban commanders Abdulllah Mehsud and Baitullah Mehsud, he said.
"His death is a big blow to Taliban militants," the official claimed.
A Pakistani official said Bhetani was educated at a madrassa in Dera Ismail Khan, before opening a seminary himself and teaching. He was arrested twice in 2006, but released after negotiations.
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