Malik, termed a tribal elder, was shot dead by unknown assailants in Pakistan's North Waziristan.
Police said that it was a targeted attack carried out by unknown masked men in Mirali area of the North Waziristan tribal district on Friday morning.
Malik was targeted by masked men at a private clinic and the assailants managed to escape after the attack.
Malik is said to be the founder of Lashkar-e-Jabbar and also a close aide of one of India's most wanted terrorists Azhar.
The fresh incident raises questions of a war among the terrorist organisations that are functional in Pakistan. In last few weeks, several terrorists wanted in India have been gunned down in Pakistan by unknown gunmen.
On October 11, Shahid Latif, one of India's most wanted terrorists and also a key conspirator in the 2016 Pathankot terror attack case was shot dead by unknown gunmen in Pakistan's Sialkot.