The militants took Faizul Rehman, a fourth-year student at Kabul Polytechnic university, from his car as he was travelling home to visit his family in the Chak district of Maidan Wardak province, around 60 kilometres west of Kabul on Thursday.
"They hanged him on Friday in front of (the) public. Local elders tried to mediate to release him, but they failed," Abdul Rehman Mangal, a spokesman for the governor of Maidan Wardak, told AFP.
"They accused him of killing Mullah Mirwais the head of their intelligence in the area," he said.
Zabiullah Mujahid, a Taliban spokesman, said they were investigating the case.
Since their ouster in 2001, hardline Taliban insurgents have executed people they accuse of spying for foreign or Afghan forces and have staged public stonings or lashings of those found to have committed adultery or had sex outside marriage.
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