According to El Watan's online edition, the suspect set off an explosives belt he was wearing when local security encircled him as he left a shop after buying large quantities of food on Tuesday.
Security was subsequently beefed up around the town, located around 300 kilometres (180 miles) east of the capital Algiers, the daily said on its website.
- On Monday, three suspects, including two would-be suicide bombers, were killed by Algerian security forces around 60 kilometres (36 miles) east of Algiers following a tip-off.
It was claimed by Al-Qaeda in the Islamic Maghreb (AQIM), a Saharan offshoot of the global extremist network which is active in an area nearly the size of Australia and also affecting Mauritania, Mali and Niger.
The newspaper said DNA testing revealed him as Abdelkahar Belhadj, born in 1988 and a member of AQIM since 2009 under the nom de guerre Mouawia.
The vehicle they were travelling in was packed with explosives they intended to use for a suicide bombing in central Algiers during the holy Muslim fasting month of Ramadan.
Ali Belhadj could not be reached to confirm reports of his son's death.