Former No 2 military official Xu Caihou, who was placed under investigation for allegedly accepting massive bribes, has died of cancer, China's Military Procuratorate said on Monday.

"We have dropped charges because of his death, but will handle his ill-gotten gains according to the law," said an official with the procuratorate who spoke on condition of anonymity.

According to the prosecuting department, Xu died at PLA General Hospital in Beijing on Sunday of multiple organ failure caused by bladder cancer after efforts to save him failed. He was 71 years old.