Prakash, who was in his mid-thirties, was rushed to the Thapathali-based Norvic International Hospital early this morning, where he was pronounced dead, hospital sources said.
He died due to heart failure, they said.
The sources close to the Maoist party chief also confirmed Prakash's death.
Prakash was secretary to his father Prachanda and also central member of CPN (Maoist-Centre).
Prachanda has left for Kathmandu from Jhapa, where he was attending election campaign for the upcoming elections.
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The news of Prakash's death comes two weeks before the first phase of provincial and parliamentary elections.
Besides Prakash, Prachanda has three daughters.