Faruqi was also wanted for the January 2002 slaying of American journalist Daniel Pearl.
He was reported killed in a fierce gunbattle yesterday with security forces in the southern Pakistani city of Nawabshah.
Officials said DNA tests have yet to be completed to confirm the identity of the body.
Earlier today, police said they arrested three suspected militants in another town in the area where Faruqi was reportedly killed. Officials said at least one of them is a wanted terror suspect.