Jalaluddin Haqqani and the network have been actively involved in various incidents of global significance.
In announcing his death Tuesday, Mujahed called Haqqani a religious scholar and exemplary warrior.
Jalaluddin Haqqani, whose son Sirajuddin Haqqani now heads the brutal group and is also the Taliban's deputy leader, died "after a long battle with illness", the Taliban said in a statement.
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Despite his fearsome reputation, his death is not expected to have an impact on the extremist group's operations.
Among other attacks, the group was said to have carried out a truck bombing in Kabul in May 2017, killing more than 150 people near the German embassy.
Men carry the coffin of a relative who died in a suicide attack in Kabul on January 28.
The Haqqani network is affiliated with both the Taliban and Al Qaeda and has been described as the top security threat in Afghanistan.
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After the US toppled the Taliban government in 2001, Haqqani served as the network's military commander. "The complexity of the insurgency and the complexity of the attacks would not have happened without the alliance with the Haqqanis", he adds.
Jalaluddin Haqqani (R), the Taliban's Minister for Tribal Affairs, points to a map of Afghanistan during a visit to Islamabad, Pakistan, October 19, 2001 while his son Naziruddin (L) looks on.
He was the only major mujahedin leader to join the Taliban and forged a close relationship with the late Taliban founder, Mullah Mohammad Omar.
The Haqqani network was formally designated a terrorist organization by the United States in 2012. Washington's own watchdog in a recent report said almost half of Afghanistan is either under the control of the Taliban or influenced by the religious militia.
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The Taliban announced Tuesday the death of Jalaluddin Haqqani, a former Central Intelligence Agency asset whose eponymous militant group is now considered one of the most unsafe factions fighting Afghan and US-led North Atlantic Treaty Organisation forces in Afghanistan. He soon abandoned the mujahedeen government, frustrated by relentless infighting, and returned to Khost where he maintained close contact with militants, including bin Laden.