He was 83.
The source was not authorised to be quoted by name. There was no immediate information on the cause of death, which occurred late yesterday.
Panamanian President Juan Carlos Varela wrote in his Twitter account that "the death of Manuel A Noriega closes a chapter in our history."
The onetime US ally was ousted as Panama's dictator by an American invasion in 1989.
Noriega later served a 17-year drug sentence in the United States.
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In recent years, Noriega had suffered various ailments, including high blood pressure and bronchitis.
In 2016, doctors detected the rapid growth of a benign brain tumor that had first been spotted four years earlier. In January of this year, a court granted him house arrest to prepare for surgery on the tumor.
Noriega is survived by his wife, Felicidad, and daughters Lorena, Thays and Sandra.
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