The Anti-Terrorist Committee said today that the suspects were blocked in an apartment in the city of Nalchik, the regional capital of the province of Kabardino-Balkariya.
They refused to surrender and were killed in combat.
The committee said the suspects were accused of several attacks, including last week's killing of a senior police officer.
A day earlier, the agency announced the killing of eight suspected militants in the nearby province of Ingushetia.
The Islamic insurgency has spread across North Caucasus after two separatist wars in Chechnya.