Mullah Akhtar Mansour is believed to have been killed as he was travelling through a remote area in south-west Pakistan, near the border with Afghanistan.
United States officials say missile-firing drones had attacked the car he was travelling in and probably killed him.
US Secretary of State John Kerry says the targeting of the senior Afghan Taliban commander sends a clear message about the US commitment to Afghanistan.
He also confirmed the strike.
"The United States conducted a precision airstrike that targeted Taliban leader Mullah Mansour in a remote area of the Afghanistan-Pakistan border region. Mansour posed a continuing, imminent threat to US personnel in Afghanistan, to Afghan civilians, Afghan security forces and (operation) Resolute Support coalition members across the country."
Mullah Mansour became the leader of Afghanistan's Taliban last year after the death of Mullah Omar.
Afghanistan's Chief Executive, Abdullah Abdullah, says the death will disrupt the Taliban's capability.
"After Mullah Omar's death, he was in charge of all terrorist attacks in Afghanisation and had direct contact with other terrorist networks, it will have a significant impact on the Taliban. His death is a blow to their abilities in carrying out terrorist attacks against the Afghan people."
On the streets of Kabul, people like Mohammad Hussain expressed relief, saying killing the Taliban leader could demoralise the insurgency in the country.
"It's happy news because they carry out suicide attacks and kill our innocent people and children. I believe the more Taliban leaders who are killed, the more stability will be brought to Afghanistan."
The Afghan government has repeatedly accused Pakistan of sheltering insurgents.
Afghan Defence Ministry spokesman Dawlat Waziri says nothing has changed.
"The Haqqani network is in Pakistan, Mullah Omar and Osama bin Laden were in Pakistan, and now Mullah Mansour was killed in Pakistan's Baluchistan. So it would be better if Pakistan cooperated with Afghanistan and did not give shelter to these people who are continuing the war in Afghanistan."
He says Mullah Mansour opposed peace talks and all reconciliation efforts by the Afghan government.
Pakistan has protested following the strike, saying the US government did not inform Prime Minister Nawaz Sharif beforehand.
The Taliban have made no official statement but two Taliban sources are reported as saying its leadership council have met to begin considering the succession.
The reports of Mullah Mansour's death has focused attention on his deputy, Haqqani, leader of a notorious network blamed for most big suicide attacks in Kabul.
He is widely seen as hostile to a negotiated settlement with the Western-backed government.
Share
