According to the statement, Rahmani died of cancer last night.
Images published on social media show an elderly aged man, identified as Rahmani, lying on a bed in a hospital. However, the location of the hospital is not mentioned.
Mullah Mohammad Hassan Rahmani was a close aide Mullah Mohammad Omar who served as the governor of southern Kandahar province and head of the southern zone during Taliban regime.
Rahmani was among the Taliban leaders who had been involved in meetings for reaching to a peace deal with government including one that was arranged in Urumqi city of China.
He was one of the few Taliban commanders who initially opposed the selection of Mullah Akhtar Mohammad Mansour as the leader of Taliban after the death of Mullah Omar.
But sources later said that a compromise had been reached and Rahmani too pledged allegiance to Mansour.