Liberation Tigers of Tamil Eelam Velupillai Prabhakaran has been shot dead by the Lankan troops, the Sri Lankan army has said.
The LTTE chief's body has also been found by the Lankan army, which has identified the body.
Following the reports of Prabhakaran's death, the police bandobast has been stepped up in Chennai.
Prabhakaran and his top aides came out of their last hiding place in a small convoy of van and an ambulance and tried to drive out of the war zone, but were gunned down, he said.
The Tiger chief was killed with two others, who are yet to be identified but believed to be his closest associates - LTTE intelligence chief Pottu Amman and Sea Tigers' chief Soosoi.
The deaths of the top LTTE leaders came a day after Tamil Tigers conceded defeat saying the decades-old battle has reached its "bitter end" and they have decided to "silence" their guns.
Earlier on Monday morning, military spokesman Brigadier Udaya Nanayakkara had said that Prabhakarn was still alive but completely encircled by advancing Sri Lankan forces in a tiny jungle area north of Vellamullivaikkal after most of the LTTE's top leaders were found killed.
The army said that its special forces had encircled Prabhakaran, Pottu Aman and Soosoi who were boxed into a 100m x 100m area.
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