"Maoist Ramesh Pahan has been killed in the encounter while two others suffered injuries, but they managed to escape. A Maoist, Lal Mohan Pahan has been arrested," Superintendent of Police Anis Gupta told reporters.
The encounter broke out during a search operation by personnel of the CRPF and the district police.
Gupta said the rebels fired about 70 bullets while the security personnel made a strong retaliatory action, firing 140 to 150 shots as the ultras retreated into the jungles.
In a separate incident at Manhu village of the district, suspected ultras of the People's Liberation Front of India set fire to a tractor.