"The head of Al Qaeda in Pakistan was among the four militants killed in Monday's police raid in Sheikhupura district's Kala Shah Kaku area, a provincial official was quoted as saying.
Punjab Home Minister Shuja Khanzada named the Al Qaeda leader only as "Abdali".
"Their leader who was giving them the briefings, who was leading the entire team, was the head of Al Qaeda in Pakistan. His name was Abdali,"said minister.
A huge cache of weapons including AK-47s, rocket launchers and suicide vests and laptops were also seized in the raid.
An Al Qaeda presence remains in Pakistan since the killing of Osama bin Laden in a 2011.
Pakistan Army has killed more than 2,700 militants during Operation Zarb-i-Azb in North Waziristan since June last year.