The police were attacked with knives and spears by the gang when they raided a house last night at Hatisola village under Chaugaon police station where they were hiding, the sources said.
The police then fired on the gang killing one dacoit and injuring another, they said.
The gang had stolen a gold idol, valuables and utensils worth Rs 8 lakh from a nearby Shiva temple, they said.
The injured dacoit was admitted to the Gauhati Medical College Hospital, they added.