A Taliban subordinate was also killed in the operation in the province's Ghormach district, NATO's International Security Assistance Force reported on its Web site.
The Taliban leader was identified as Mullah Bahuddin, responsible for directing attacks against Afghan security forces and facilitating weapons distribution and suicide-bomb attacks in the area.
The report said Bahuddin was a key leader in the Taliban hierarchy, working with the Badghis and Ghormach groups.
Bahuddin and his subordinate, who was not identified, were killed during a firefight with the security forces, the report said.
The death of Bahuddin raised the number of Taliban members killed in Faryab province since the beginning of this year to more than 50, the ISAF said.
Separately, a combined security operation resulted in the seizure and destruction of 2,200 pounds of marijuana seeds and 3,300 pounds of hashish in the Zharay district of Kandahar province.