Local media quoted officials as saying unknown gunmen “sprayed bullets” at Hassan al-Droui near a central market.
It is the first assassination of a member of Libya’s transitional government.
Libya has suffered continuing lawlessness since the overthrow of Col Muammar Gaddafi in October 2011.
The motive behind Hassan al-Droui’s assassination is unclear.
Hassan al-Droui was a former member of the National Transitional Council, the political arm of the 2011 uprising.
He was appointed to his role by the transitional government’s first prime minister and kept his position when Ali Zeidan took over.
Sirte was the site of the final battle of Libya’s civil war, during which Col. Muammar Gaddafi was captured and shot dead while trying to hide from rebels.
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