Yusuf, 87, was rushed to Bangabandhu Sheikh Mujib Medical University hospital this morning after he fell ill in his prison cell at Gazipur's Kashimpur Jail, Dhaka Central Jail Senior Supervisor Farman Ali said.
He died soon after he was admitted to hospital, Ali said.
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Yusuf, accused of heading the infamous auxiliary force Razakar Bahini that targeted Hindus and Bengali nationalists during the 1971 liberation war, died of cardiac arrest.
"The Jamaat leader died of cardiac arrest," BSMMU director A M Bhuiyan was quoted as saying by the bdnews24.Com.
Arrested on May 12 last year, Yusuf was indicted by the International Crimes Tribunal-2 on 15 war crimes charges, including killing, genocide and arson.
His defence team had argued that Yusuf should be granted bail immediately because of his old age.
The tribunal was set up in 2010 to investigate abuses committed during the 1971 war.