Ang Furba Sherpa, 25, died after slipping over the Lhotse Face, said Thupden Sherpa, manager of Arun Treks & Expeditions.
The deceased fell onto the Camp II on the route. A rescue team has been mobilised to collect his body, reports said.
He was one among the seven sherpas who were accompanying a seven-member expedition team of Indian soldiers for the fourth highest mountain in the world at 8,516 metres.
Mountaineering is a major source of income for Nepal but last year's earthquake in which nearly 9,000 people perished has threatened the future of its trekking industry.
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Last week, nine Nepalese became the first climbers in three years to summit Mt Everest, paving the way for others to win over the 8,850-metre peak.
In 2015, an avalanche triggered by a powerful earthquake killed 19 climbers and injured 61 others at the base camp. A year before, 16 sherpa guides were killed by an avalanche above the base camp.
Nepal has issued 289 permits to mountaineers for this year's spring climbing season, which runs from mid-April to May end.
Falling from cliffs and mountains are among the most common causes of death during expeditions and the Lhotse Face is especially steep and icy.