"Binda Pahan, a member of the Kundan Pahan group, was killed in the encounter near Huruwa village. His body has been recovered," Superintendent of Police M Tamilvanan, who was leading the district and CRPF teams, said here.
The other Maoists escaped to a nearby forest, he said, adding that a rifle was recovered from the spot.
The encounter occurred after a tip off that the Maoists had planned to attack the house of a special police officer.
Maoist Kundan Pahan is wanted in several Naxal-related cases, including the beheading of special branch inspector Francis Indwar a few years ago.