MyStateline.com acknowledges the rumors, but denies their accuracy:
(Dubai) — A source is laying to rest a rumor that the king of Saudi Arabia is dead.
An adviser to a senior member of the ruling family says King Abdullah bin Abdul-Aziz is alive.
Abdullah has been on the mend in Morocco since January after he had surgery in the U.S. for a blood clot that complicated a slipped disc.
The only article I can find that says Abdullah is dead is from Islam Times . Notice the assertion that the king became upset after an argument with President Obama, and had a heart attack as a result (all spelling errors are in the original):
Saudia Arabia’s King Abdullah Passed Away
Saudi King Abdullah bin Abdul Aziz passed away yesterday, according to an Islam Times reporter…
Islam Times: Saudi Arabia’s 86-year-old King Abdullah was discharged from a New York City hospital in good health after going through two back operations in December 2010. The king delegated the management of the affairs of the world’s largest oil supplier to his half-brother, Crown Prince Sultan bin Abdulaziz, during his absence.