A 39-year-old woman, who was under observation for Nipah virus symptoms, died on Saturday.
However, the samples of the woman were found to be negative, Kerala Health Minister K K Shailaja told reporters.
The cause of her death has to be ascertained, she said.
A health department official said the woman had accompanied a patient to Kozhikode Medical College Hospital where a Nipah-affected person was being treated.
After she fell ill, she was shifted from the Pariyaram Medical College to the Kozhikode Medical College hospital as she showed symptoms similar to that of the Nipah virus.
The health authorities had drawn up a list of 1,949 people who had come in contact with the Nipah-affected persons to monitor their health condition.
The woman also figured on the list and had tested negative for Nipah virus earlier as well.
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Shailaja chaired a high-level meeting on Saturday morning, which was attended by top health officials.
Two patients, who tested positive for the virus, are undergoing treatment at the Kozhikode Medical College Hospital and their condition is stable.
The newly emerging zoonosis has so far claimed 16 lives in Kozhikode and Malappuram districts.
The state government has postponed all meetings scheduled to be held in the two districts this month until further notice.
As a precautionary measure, several staffers, including nurses and four doctors, of the Balussery taluk hospital were asked on Friday to go on leave.
These doctors and nurses had come in contact with two Nipah virus patients who died.
The Public Service Commission (PSC) has postponed all its written and online exams scheduled to be held until June 16.
New dates will be announced later.