Mr Habeb was among the notorious Somali warlords that ruled the horn of African country in the absence of central authority following the fall of the Somali government in 1991.
He died Thursday morning in Halane Hospital in Mogadishu where he has been undergoing treatment for unknown illness, according to Abdifatah Shaweye, a former close friend of Habeb, who spoke to Radio Mogadishu.
Before joining the transitional government of Somalia in 2007 where he served as governor of Benadir and Mogadishu mayor, Mr. Habeb ruled Jowhar town as a powerful warlord.
He was to be flown to neighbouring Kenya for further treatment later today before he passed way in his hospital bed in Mogadishu.
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Ex-Somali warlord dies in Mogadishu
Former Mogadishu mayor Mohamed Omar Habeb popularly known as Mohamed Dhere has died in a hospital in Mogadishu, where he has been fighting for his life for the last few days, State owned broadcaster has reported.