Ashfak, son of Ansar, was shot dead near a bank in the Jagdishpur market on the Lucknow-Varanasi national highway, they said.
Heavy police deployment was made and traders downed shutters as panic gripped the area after the shootout. Police officials said they suspected there was old enmity between the two parties involved.
District Magistrate Shakuntla Gautam and Superintendent of Police K K Gehlot rushed to the spot after the incident, officials said.