The skirmish took place late this afternoon in a forest under Basaguda police station limits, district superintendent of police K L Dhruv said.
Security forces came under fire while carrying out a search operation, leading to the gun-battle, the SP said.
After the firing stopped, the forces recovered the body of a Maoist and a country-made weapon. Identity of the slain person was yet to be ascertained.
Combing operation was still underway in the region, he added.
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