"I confirm the martyrdom of Waliur Rehman in a drone strike on Wednesday. We are shocked at the martyrdom of our leader but are proud of his sacrifices," said Ihsanullah Ihsan, spokesman for the banned Tehrik-e-Taliban Pakistan.
Ihsan said the Taliban was withdrawing its offer of a dialogue with the new government, and would take revenge for Rehman's killing.
"We had sincerely offered a dialogue to the government but we strongly believe that the government has a role to play in the drone strikes," he said.
Self-styled Commander Khan Saeed alias Sajna was reportedly nominated to succeed Rehman as the deputy chief of the Pakistani Taliban.
Saeed was a close aide of Rehman and reportedly runs several militant training camps in the restive tribal region.
Rehman and three senior militant commanders were among six persons killed in the CIA-operated drone strike carried out in Chashma Pul area of North Waziristan Agency.
Sources said his death would hit the incoming PML-N government's plans to open a dialogue with the Taliban as mediators were hoping to establish contact with the militants through the relatively moderate Rehman.
Earlier in the day, security officials told journalists in the country's northwest that Rehman was buried at an undisclosed location last night.
The US had accused Rehman of involvement in a 2009 suicide attack in Afghanistan that killed seven CIA employees. Rehman was carrying a USD 5 million bounty on his head.
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