LANA news agency, based in the country's east, said a vehicle exploded at around 2:00 AM (0530 IST) in a western suburb of Benghazi as a convoy of cars drove up carrying the chief of a forensic police unit.
The two dead were in the convoy, it said, while civilians were among the wounded.
A military source said the official, Hamada al-Ramli, escaped unhurt.
"We have received seven wounded in the explosion, some in serious condition," Khalil Goueder, a spokesman for the Benghazi Medical Centre, told AFP.
The Mediterranean city is plagued by frequent car bombings.
Jihadists such as the Islamic State group took root in Libya in late 2014, taking advantage of the chaos and power struggles that followed the fall of Moamer Kadhafi's regime in a 2011 revolution.
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