The 'black uniform-clad' Naxalite, identified as Kartam Deva, was gunned down in the encounter that took place in the forest near Burumapad village, Sukma District Superintendent of Police D Shravan told PTI over phone.
A joint team of District Police Force and Special Task Force had been sent for patrolling in the Kistaram police station area based on a tip-off.
When the team was moving in the forest under Burumapad village, the Naxals attacked the police personnel, he said.
Later, during a search of the spot, police found the body of the Naxalite.
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Four loaded guns, detonator and other material were recovered from the spot.
The horns and skin of a deer were also seized from the place, the SP said.
The deceased Naxalite was a Jan-militia platoon commander and carried a reward of Rs one lakh on his head, he said.
The police force is deployed in the area and a search is on for the Naxals, he added.