Wakil Ahmed Muttawakil, former foreign minister in the Taliban government in Afghanistan and former director of late Taliban leader Mullah Omar's office, told Al-Arabiya news channel that the former Taliban supremo died two years ago.
He said the news was kept secret so the Taliban movement does not split from within.
Muttawakil provided a photo of Mullah Omar to the channel and claimed that the photo of the late Taliban leader which was previously circulated in which he is without his right eye was not real and was allegedly a disguise by Taliban for security reasons in order to hide his facial features.
However, the Afghan government had said Mullah Omar died in April 2013 in Pakistan.
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Earlier this month, a breakaway faction of the Taliban appointed Mullah Rasool as its own leader, in the first formal split in the militant movement.
He was so elusive during his last few years he had not been seen in public since fleeing when the Taliban were ousted from power in 2001.