FSB chief Nikolai Patrushev said on Monday that Basayev, who claimed responsibility for the 2004 Beslan school attack in which 331 people, half of them children, were killed, was planning an attack to coincide with Russia hosting the G8 summit of world leaders this weekend.
CNN's Matthew Chance said the killing was a massive victory for the security services and a huge blow for the rebel leadership.
Russian television showed Patrushev meeting Monday with Putin to tell him about the special operation in Ingushetia -- a republic bordering Chechnya -- in which Basayev was killed in the early morning hours of Monday.
The Russian agents exploded a truck bomb next to several cars in which Basayev and other rebels were riding, according to Interfax, which was quoting Ingush Deputy Prime Minister Bashir Aushev.
"This is retaliation he deserves for killing our children in Beslan, Budennovsk, all the terrorist acts his bandits perpetrated in Moscow and other regions of Russia, including Ingushetia and the Chechen Republic," Patrushev said in an Interfax report.
Law enforcement officials in Ingushetia told Interfax Basarev's body was in pieces but it was identified by his head and by the fact that he had earlier lost a foot.
Whoa...hard core. It's only too bad they were able to draw out his death a little longer. Good riddance to bad child-killing rubbish.