A senior Al-Qaeda leader accused of plotting to blow up the New York subway and London underground has been killed by Pakistani soldiers.

Adnan Shukrijumah, the terror group's chief of global operations, was listed by the FBI as "most wanted" terrorist for his involvement in plots against the West.

Pakistan's military confirmed Shukrijumah was killed during a raid in Pakistan yesterday, the UK Telegraph reported.

US federal prosecutors allege he recruited three others to train with him in Pakistan for a subway attack.

Attorney General Eric Holder described it as one of the most dangerous plots since 9/11.

"The Al-Qaeda leader, who was killed by the Pakistan army in a successful operation, is the same person who had been indicted in the United State," a senior Pakistani army officer said.

Shukrijumah is also suspected of having played a role in plotting Al-Qaeda attacks in Panama, Norway and the UK.

After the September 11 attacks, he was seen as one of the biggest threats to the US and Europe, captured terrorist Abu Zubaydah told authorities.