Ibrahim Khair Andish, head of the provincial council says that Rashid Dawran came under the suspicion after he consulted with the council on numerous occasions before Eid-ul-Fitr.
He said a group of militants recently detained in capital Kabul has said during investigation that this person was cooperating with them.
This comes as a major military operation is under the discussion after a rapid surge in insurgency in the northern region.
In last few months, militants have carried out several deadly attacks in the north.
In a single coordinated attack of Taliban suicide bombers on the appeal court in Mazar-i-Sharif, provincial capital of Balkh, as many as 18 people lost lives and around 70 others sustained injuries in April.
Following this attack several other deadly militant attacks took place in Kundoz, Faryab and other parts of northern Afghanistan leaving dozens of security men and civilians killed.