NOTORIOUS Mexican drug lord Hector Beltran Leyva has been captured at a seafood restaurant in a picturesque town in central Mexico popular with American retirees.

The Mexican ­Government's announcement it had snared the boss of the Beltran Leyva cartel is a serious blow to a gang named after a group of brothers who became infamous for the bloody turf war they waged with their former ally, Joaquin "Shorty" Guzman.

Beltran Leyva was caught by soldiers in the picture postcard town of San Miguel de Allende, a three-hour drive north-west of Mexico City, and had been living in the nearby city of Queretaro posing as a businessman dealing in art and real estate.

The 49-year-old and an associate were carrying ­military-issue handguns but, like his adversary Guzman, he was arrested without a shot being fired. Guzman, the world's most-wanted drug boss, was captured in Mexico in February.

Tomas Zeron, of the ­Attorney General's office, said Beltran Leyva had been keeping a low-key lifestyle.