North Waziristan-based Hafiz Gul Bahadur had one of the longest surviving peace deals with security forces before he revoked it today.
Bahadur's spokesman Ahmadullah Ahmdai said the locals have been given a deadline till June 10 to leave the area due to impending fighting with the security forces.
He blamed the military operation which about two weeks ago killed at least 80 militants.
The Taliban commander also distributed pamphlets in the region, asking the locals to leave as the government was planning to launch a fresh operation.
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Bahadur has hundreds of fighters under his control but has avoided fighting state troops under an agreement of 2007.
He has concentrated on attacking western troops in Afghanistan.
Two other groups have fought pitched battled in the district this month which has left about 40 militants dead.
The announcement by Bahadur can cause problems for the government which is trying to salvage a stalled peace process with the Tehrik-e-Taliban Pakistan led by Maulvi Fazlullah.