The leader of the Islamic State in Khorasan, a region across Afghanistan and Pakistan, was killed in a drone strike according to Afghan officials.
Hafiz Saeed is said to have died on Friday night in Achin, in Afghanistan's eastern Nangarhar province.
IS has rejected the claims, telling the BBC Hafiz Saeed Khan "is alive".
The Afghan intelligence agency, the NDS, said the drone strike was carried out by US-led coalition forces in coordination with intelligence provided by the spy agency.