State media said Gaid Salah died of a heart attack on Monday morning in the military hospital of Algiers.
Ahmed Gaid Salah, 79, was seen as Algeria's de facto strongman since a pro-democracy movement.
Through his backing, he pushed out the country's longtime President Abdelaziz Bouteflika in April.
He played a key role pushing through the December 12 presidential elections in the face of stiff opposition on the streets.
Al Jazeera talks to Amel Boubekeur, a research fellow at the European Council of foreign relations, live from Algiers.
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