"A woman of 33 originally from Sohag province (in the south) has died of the H5N1 virus," health ministry spokesman Hossam Abdel Ghafar told AFP.
He said another person is still being treated, and added that seven patients diagnosed this year with bird flu were cured.
The H5N1 strain has killed more than 400 people worldwide since first appearing in 2003, mainly in Southeast Asia.
It is one of several deadly or potentially deadly strains of bird flu that are closely monitored by the World Health Organisation.
A third strain of bird flu -- H7N9 -- has killed more than 170 people since emerging in 2013.