The former Yemeni president's break with the Houthis came after five days of bitter clashes around the capital, Sana'a, between his supporters and those of the Iranian-backed Houthi militia. "It killed everyone", said local resident Aly Al Mazhary.
Saleh announced the end of his alliance with the Houthis on Saturday.
The Houthi-aligned television station, al-Masirah, stated: "The interior ministry announces the end of the crisis of the treason militia and the killing of its leader and a number of his criminal partisans".
The forces of the former Yemeni president regained control over the cities and areas under the control of the Houthis.
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Activists also published pictures and a video showing Saleh's body as gunmen put it behind a wheel amid cheers, in a scene reminiscent of the death of former Libyan leader Muammar Gaddafi in October 2011. Blood stained his shirt under a dark suit.
The head of the Houthis' Ansarullah group warned that the biggest victor from what he described as Saleh's "sedition" was the Saudi-led coalition.
Yemen's former president on Saturday proposed talks with Saudi Arabia after an apparent split in the rebel alliance that could change the course of the war that has left thousands dead and the country on the brink of starvation. It gave no further details.
Two of Saleh's associates have confirmed and a third official from the government of Yemen's internationally recognized president, Abed Rabbo Mansour Hadi, has also confirmed.
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Saleh, 75, ruled Yemen for more than three decades until his ouster under popular pressure in 2012. In 2014, his forces allied with the Houthis despite the fact that as president he had gone to war with them on more than one occasion.
Saleh loyalists and rebel fighters continued to clash on Saturday afternoon in Sanaa, where violence has left at least 40 fighters dead or wounded since Wednesday according to rebel chief Abdulmalik al-Huthi.
In a televised address, Saleh called for new relations with the Saudi-led coalition, which he and the Houthis have been battling for nearly three years (since March 2015).
The breakdown of the alliance has led the coalition to step up its bombing of Houthi positions, in support of Saleh's forces.
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