Pakistan's interior minister has accused the US of "scuttling" efforts towards peace talks with the Taliban by killing the militants' leader in a drone strike.

The development comes as the Taliban quickly moved to replace Hakimullah Mehsud, who was one of Pakistan's most-wanted men, vowing a wave of revenge suicide bombings.

Mehsud's death, which was confirmed by a senior Taliban commander, happened hours before a meeting between a team of religious clerics and Taliban officials in North Waziristan, with a view to start peace talks.

Pakistan has denounced the killing as a US bid to derail planned peace talks, summoning the US ambassador for an explanation of the fatal attack.

"The murder of Hakimullah is the murder of all efforts at peace," interior minister Chaudhry Nisar said.

"Brick by brick in the last seven weeks we tried to evolve a process by which we could bring peace to Pakistan and what have you [the US] done?

Hakimullah Mehsud Became a militant after meeting the founder of the Tehreek-e-Taliban Pakistan (TTP)

Became a militant after meeting the founder of the Tehreek-e-Taliban Pakistan (TTP) Rose quickly through the ranks, making his name by attacking convoys supplying NATO troops

Rose quickly through the ranks, making his name by attacking convoys supplying NATO troops Took the helm of the TTP in 2009, pushing it closer to al Qaeda

Took the helm of the TTP in 2009, pushing it closer to al Qaeda Was charged with terrorism by US after deadly suicide attack at CIA base in Afghanistan in 2009

Was charged with terrorism by US after deadly suicide attack at CIA base in Afghanistan in 2009 The US offered $5 million for information on Mehsud's whereabouts

The US offered $5 million for information on Mehsud's whereabouts Mehsud was said to enjoy media attention and the spotlight

Mehsud was said to enjoy media attention and the spotlight Mehsud had two wives, but it is unclear whether he had any children

"Americans said they support our efforts at peace. Is this support?

"You have scuttled it on the eve, 18 hours before a formal delegation of respected ulema [religious scholars] was to fly to Miranshah and hand over this formal invitation."

Mehsud, who had a $US5 million bounty on his head, and three others were killed on Friday in the militant stronghold of Miranshah in north-west Pakistan.

The US state department has issued a statement refusing to confirm or deny America carried out the attack.

Mehsud's vehicle was hit after he attended a meeting of Taliban leaders, a Pakistani Taliban fighter said, adding that Mehsud's body was "damaged but recognisable". His bodyguard and driver were also killed.

The Taliban secretly buried Mehsud under cover of darkness amid fears his funeral might be attacked by US drones, militants and security sources said.

"Every drop of Hakimullah's blood will turn into a suicide bomber," Pakistani Taliban spokesman Azam Tariq said.

"America and their friends shouldn't be happy because we will take revenge for our martyr's blood."

Taliban number two, Khan Said, expected to replace Mehsud

Taliban commanders said they wanted to replace him with the movement's number two, Khan Said, who is also known as Sajna.

Said is believed to have masterminded an attack on a jail in north-west Pakistan that freed nearly 400 prisoners in 2012 and a big attack on a Pakistani naval base.

But some commanders were unhappy with the choice and wanted more talks, several militants said, indicating divisions within the Pakistani Taliban, an umbrella group of factions allied with the Afghan Taliban and battling the Pakistani state in the hope of imposing Islamist rule.

The Pakistani Taliban killed an army general in September, has beheaded Pakistani soldiers and killed thousands of civilians in suicide bombings.

The group also directed a failed attempt to bomb Times Square in New York.

In 2010, Mehsud appeared in a farewell video with a Jordanian suicide bomber who killed seven CIA employees at a base in Afghanistan.

Pakistan to review 'every aspect' of US cooperation

Pakistan's Foreign Office said "every aspect" of Pakistan's cooperation with Washington would be reviewed.

"The government of Pakistan does not see this drone attack as an attack on an individual but as an attack on the peace process," Mr Nisar said.

Pakistan routinely condemns drone strikes on its soil as a violation of sovereignty, but Mr Nisar's criticism of the US is unusually strong.

Since its creation six years ago, the Taliban has killed thousands of civilians, soldiers and police in its bloody insurgency against the Pakistani state.

It was also behind the attempt to kill schoolgirl education campaigner Malala Yousafzai in October last year.

ABC/wires