The face-off took place between village Irdvaya and Bhattebeda under Orcha police limits yesterday, Narayanpur Additional Superintendent of Police O P Sharma said.
A joint squad of District Force (DF), Chhattisgarh Armed Force (CAF) and Special Task Force (STF) was carrying out a search operation in Orchha region of Abhujmad, located around 350 km from the state capital.
Sensing that security personnel have landed near the Irdavaya forests, rebels opened indiscriminate firing on them following which security forces retaliated, the ASP said.
During a search of the encounter site, a laptop, a mobile set, a solar panel, couple of batteries, Naxal uniforms and Maoist-related materials were recovered, he said, adding that blood stains found at the spot indicated that some ultras might have been killed or injured in the gun-battle.
After being informed about the incident, reinforcement was rushed to the spot, he said.