Flameless combustion is considered as a flexible and efficient combustion process for low heating value gas fuel. This paper presents numerical simulations of premixed flameless combustion using producer gas as a fuel. Different initial conditions of the premixed fresh reactant (air/fuel mixture) and dilution levels are taken into account for the investigation. The numerical simulations were investigated using a network of chemical reactor models with the detailed reaction mechanism of GRI-Mech 3.0. A threshold dilution level for flameless combustion fuelled by producer gas was determined. The numerical results show that dilution of the fresh reactant with hot combustion products and initial fresh reactant temperature play important roles in flameless combustion formation and its auto-ignition behaviour, rather than equivalence ratio of the fresh reactant. In the flameless combustion regime, temperature and chemical concentrations were reduced while chemical kinetics process was decelerated, resulting in delay of the auto-ignition process.