The death of Chechen leader Aslan Maskhadov is likely to have far reaching consequences on the troubled republic of Chechnya, observers say.

For one, the death diminishes the chances of a peaceful resolution to the 10-year conflict in the troubled region.

Maskhadov, one of Chechnya's two main Chechen chiefs who was elected president in January 1997 and thus enjoyed widespread legitimacy among Chechens, was reported dead by the Russian military on Tuesday.

The soft-spoken 53-year-old former Red Army colonel became one of Chechnya's foremost resistance leaders during the first Russo-Chechen war, served as the president of independent Chechnya and headed the resistance during the ongoing second occupation, acting as a restraining influence on his counterpart, Shamil Basayev.

"He was a restraining force," his longtime ally and spokesman Akhmed Zakayev said from Britain where he has received political asylum.

"The situation now risks getting out of hand," he added.

With Maskhadov dead, the Kremlin will be free to pursue its iron-fisted policies in Chechnya where the authority of Basayev is likely to grow.

"He was a person with whom one could have started negotiations," said Lyudmilla Alexeveva of the Moscow branch of the Helsinki Group.

Without him, Moscow can say there is no one with whom to conduct negotiations.

"This is good for Putin and his ratings, for the first time in months something has happened to lift his standing," said Slexei Malashenko, an analyst in Moscow.

"It is too early to say what will happen to Chechnya's resistance, but there will certainly be a radicalisation," he added.

PHOTO CAPTION

An undated file picture shows Aslan Maskhadov in a camp in the mountains of Chechnya. (AFP)