Intelligence Brigadier General Saleh Tamah was wounded on Thursday in a strike on a military parade in Al-Anad air base, in government-held Lahij province some 60 kilometres (40 miles) north of Yemen's second city Aden.
Medical sources told AFP that Tamah underwent several surgeries in a hospital in Aden but died Sunday morning.
At least seven loyalists -- including Tamah -- were killed and 11 injured in Thursday's incident, which threatens to hamper United Nations-led peace efforts.
The UN voiced alarm on Friday following the attack and urged "all parties to the conflict to exercise restraint and refrain from further escalation".
At talks in Sweden last month, the UN brokered several agreements between the Iran-aligned Huthi rebels and the Saudi-backed government seen as the best chance of ending nearly four years of devastating conflict.
The warring sides agreed on truce deals for the key rebel-held aid port of Hodeida and battleground third city Taez.
The UN is working to schedule a new round of consultations, possibly in Kuwait, aimed at drafting a political framework.
Since then, the conflict has killed nearly 10,000 people and unleashed the world's worst humanitarian crisis, according to the UN.
UN aid officials say 80 per cent of the population -- 24 million people -- are in need of aid and nearly 10 million are just one step away from famine.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)