Reinado was a senior figure among about 600 soldiers who deserted East Timor's armed forces. Ramos-Horta is being treated in Australia for his injuries [AFP]The rebel soldiers said they were discriminated against because they originated from western districts.
Reinado was arrested and jailed on illegal weapons, attempted murder and desertion charges, but later escaped prison.
Ramos-Horta called off a hunt for him after the authorities failed to secure his arrest.
Negotiations between the president and Reinado were cut short when Reinado's men stormed the president's residence on Monday.
Reinado was shot dead and Ramos-Horta was hit by two or three bullets in the ensuing battle.
Maria Luisa, one of Reinado's neighbours, said on Wednesday: "This happened because the leaders adjourned a dialogue with him and that made him stressed and out of control."
Ramos-Horta is being treated in Australia for his injuries and doctors say he is expected to make a full recovery.