Western forces planted a £1.9million bounty on his head for anyone who knew of his whereabouts last year.
Al Harzi, 33, was a key player in the organisation's explosive team and reportedly helped organise a number of high profile attacks on innocent civilians.
He is believed to be one of ISIS's first ever terrorist fighters.
The US Department of Defence confirmed the news of his death today.
A spokesperson said the incident will play a big role on recruiting foreign terrorists.
Captain Jeff Davis said: "His death will impact ISIS's ability to integrate foreign terrorist fighters into the Syrian and Iraqi fight as well as to move people and equipment across the border between Syria and Iraq."
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