A Pakistan government minister has said the drone strike, which occurred on Friday, had ruined attempts to hold peace talks with the militants.
In the past US attacks on Taliban commanders have led to retaliatory strikes by militants.
Four other people as well as Mehsud, including two bodyguards, were killed when four missiles struck their vehicle in the north-west region of North Waziristan.
The Pakistan government has strongly condemned the drone strike which it claims is a violation of Pakistan’s sovereignty.
Mehsud’s four year spell as the head of the feared militant group had been characterised by horrific attacks which killed numerous soldiers, government officials and civilians.
Taliban commanders have said his funeral will take place on Saturday although some sources are reporting he has already been buried.
The Pakistani Taliban has voted to promote Khan Said, also known as Sajna, to replace Mehsud.
Said was the number two commander in the militant group and is believed to have organised a prison break at a Pakistan jail that freed nearly 400 inmates last year.
The new leader has a reputation as a fearsome warrior and helped plan an attack on a Pakistani air force base in 2012.
Said, who was elected after a meeting of Taliaban leaders, is believed to have no formal education, Express informs.
