The answer to whether or not Gajeel is dead will be provided in “Fairy Tail” episode 304. In the latest episode, Gajeel executed a seemingly fatal blow on Bloodman but the latter suddenly went back and clutched onto the Iron Dragon Slayer vowing to bring Gajeel with him to the underworld.

Who kills Gajeel?

Bloodman slashes Gajeel in his Third Seal Bloodman then makes a point that with the First Seal, his opponent's magic is stolen by means of the Magical Barrier Particles, which are emitted from his body.

What happens to Gajeel in Fairy Tail?

After Fairy Tail's disbandment, Gajeel joins the Magic Council and becomes the captain of the Custody Enforcement Unit, but after Avatar is defeated, he returns to Fairy Tail. Originally a Dragon Slayer from four hundred years past, Gajeel was sent to the future to assist in the destruction of Acnologia.