The provincial government media office in a statement said Wali was killed during the clashes between the Afghan forces and Taliban insurgents in Alishen district.
The statement further added that the clashes took place late on Saturday afternoon in the vicinity of Kotali area.
Wali was involved in a number major terrorist attacks in various parts of Laghman province, the provincial government said, adding that his dead body was left for several hours in the battlefield after the remaining insurgents fled the area.
The provincial government also added that sporadic clashes had taken place in other parts of the provincial capital on Saturday evening which left at least three militants dead or wounded.
Laghman has been among the relatively calm provinces since the fall of the Taliban regime in 2001 but the anti-government armed militant groups have increased their insurgency in some parts of the province during the recent years.
This comes as the officials earlier reported that a major attack plan by the Taliban militants to capture the government compound and other key institutions was thwarted by the security forces.