Richard Heldreth, the president of the corrections officers' union at Hazelton, told WVNews that a male inmate had been slain there overnight, but was unable to immediately confirm the inmate's identity.
Bulger had recently been moved Hazelton from a prison in Florida after a stint in a transfer facility in Oklahoma City.
Bureau of Prisons officials and his lawyer declined last week to comment on why he was being moved.
In the past three months, there have been three homicides at Hazelton, with the officers' union blaming chronic under-staffing.
'We are very understaffed,' he told WPRI12.
Bulger was serving a life sentence after being convicted in 2013 of a litany of crimes, including participating in 11 murders.
These 1953 file Boston police booking photos show James Bulger after an arrest.