Visakhapatnam district superintendent of police (rural) Dr Koya Praveen said the police recovered 14 'kit bags' from the spot after the encounter which took place at around 2 am.
There were no casualties.
The police spotted a group of ultras during a combing operation and asked them to surrender, however the Maoists opened fire to which the police retaliated, he said.
Combing operation is still underway in the area.