The Shin Bet says Shalom, who was 86, passed away in Tel Aviv today. It did not give a cause of death.
Shalom served as director from 1980 to 1986, when he was forced to resign following allegations that the agency killed two Palestinians believed to have hijacked a bus in Tel Aviv and then subsequently covered up their deaths.
Early in his career, Shalom was part of the team that captured wanted Nazi Adolf Eichmann in Argentina.
He also appeared in the 2012 Oscar-nominated documentary, "The Gatekeepers," a series of interviews with former Shin Bet chiefs.