Rahman, 16, and Ayazuddin, 19, met with the accident on the city's outskirts.
Ayazuddin, an upcoming cricketer, was riding a sports bike with his cousin when he lost control and fell down near Poppalaguda on the Outer Ring Road.
Ayazuddin and Rahman were rushed to Apollo Hospital in Jubliee Hills at 9.45 a.m., according to a medical bulletin.
"Both of them were brought with cardiac arrest to the hospital. A team of doctors worked on them. After one-and-a-half hour of efforts, Ajmal could not be revived and was declared dead," it said.
According to head of emergency medicines of the hospital Mahesh Joshi, Ayazuddin responded to resuscitation measure and was taken for emergency surgery to stop bleeding in his chest.
"He (Ayazuddin) also sustained injuries in kidneys. His condition is critical. He is on ventilator and his blood pressure is being supported with a high dose of medication," the bulletin said.
A multi-speciality team of doctors is closely monitoring his parameters in Intensive Care Unit.
Rahman was the son of Azhar's sister and grandson of former MP Khaleel-ur-Rahman.
According to police, Ayazuddin was driving Suzuki GSX R1000 with his cousin riding pillion. The youngsters, who were said to be race bike enthusiasts, were riding on the Outer Ring Road though two-wheelers are barred from doing so.
Azharuddin, who was away in London, is rushing back to Hyderabad.
Chief Minister Kiran Kumar Reddy, state Congress Chief Botsa Satyanarayana, Hyderabad MP Asaduddin Owaisi, Secunderabad MP Anjan Kumar Yadav and cricketer V.V.S. Laxman reached the hospital.
Ayazuddin is a second year B.Com student at St. Mary's College.
Ayazuddin is the second of Azharuddin's two sons from his former wife Naureen, whom he divorced to marry former actress Sangeeta Bijlani.
Azharuddin, who played 99 Tests and 334 One-Day Internationals for India, was banned for life in 2000 following allegations of his involvement in match fixing.
The former cricketer joined Congress party before 2009 elections and was elected to the Lok Sabha from Moradabad in Uttar Pradesh.
Hyderabad: Ajmal-ur-Rahman, nephew of former Indian captain Mohammed Azharuddin, died here while the cricketer's son Mohammed Ayazuddin is fighting for his life after an accident early Sunday, police said.
First Published: Sunday, September 11, 2011, 22:32