Both the ultras were carrying reward of Rs 6 lakh each on their heads.
They were identified as Nirmala alias Sawita Dhurwe (25), a deputy commander of Kasansur Dalam, and Aarti alias Sita Pudo (30), a member of Kasansur Area Committee.
According to police, the naxals received a severe set back in the death of the duo against whom a number of cases were registered in various police stations.
Nirmala was the wife of North Gadchiroli Division Secretary, Joganna, and was involved in 40 offences including murder of policemen, civilians, kidnapping, arson etc.
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The gunbattle occurred last evening when the personnel from Anti-Naxal Squad of the district police were on a combing operation in Kasansur area when a group of armed Maoists hiding in the forest suddenly opened fire at them around 5.30 PM.
The policemen immediately returned fire, killing two of them.
Police had recovered a huge stock of arms and naxal material from the spot of the encounter, including a 303 rifle, a 12-bore rifle, one claymore mine and explosives, live cartridges, a medicine box, a camera flash etc.