The village head of Mangipali-Koteru village, whose actual name was yet to be asserained, was forcibly taken away from his house under MV-79 police station area last night.
The villagers found the bullet-ridden body of the 65-year-old village head near the forest.
"We suspect that the left wing ultras might have killed the village head suspecting him to be a police informer," Malkangiri SP Mitrabhanu Mohapatra said.
Police force has rushed to the spot, he said.
This is the third killing in the district in the last fortnight by Maoists.