The Kenyan -- who goes by the alias Ikrima -- is linked with two Al-Qaeda operatives, now deceased, who played roles in the 1998 bombings of US embassies in Kenya and Tanzania, the official said.
The two Al-Qaeda operatives, named by the US official as Harun Fazul and Saleh Ali Saleh Nabhan, are also believed to have played a role in the 2002 attacks against Israeli targets in Mombasa, Kenya.
The New York Times cited a US official as saying the target had likely been killed, but that Navy SEALs were forced to withdraw before confirming the kill.
The operation marked the most significant US assault in Somalia since commandos killed key Al-Qaeda operative Saleh Ali Saleh Nabhan in the same area four years ago.
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It came after an attack last month by Shebab gunmen on the upscale Westgate shopping mall in Nairobi that left 67 people dead during a four-day siege.
Libi, who was indicted in connection with the 1998 embassy bombings in east Africa that left more than 200 people dead, had a USD 5 million FBI bounty on his head.