The interior ministry said: "Conclusive evidence was discovered that pointed to the fact that elements involved in [the Sharm el Sheikh] attacks were in a quarry at Mt Ataqaa. Security officers were fired upon from the location, whereupon they immediately dealt with the attack."
Flayfil was killed in the exchange of fire. His wife, who was with him, was wounded and later died of her wounds. The couple's four-year-old daughter was also wounded.
Flayfil was being tried in absentia for the bombings in Taba last October that killed 34 people and was one of the authorities' main suspects out of a list of 15 wanted in relation to the Sharm el-Sheik attacks. The official death toll stands at 64, but hospitals say it could rise to 88.