The encounter took place during a joint operation by personnel of the Special Operation Group, the Greyhounds of Andhra Pradesh and the BSF near Similipadar last evening, Superintendent of Police Jagmohan Meena said.
Following a tip off, the securitymen launched the operation there and the red rebels, who were about 20 in number, fired at the security forces and they retaliated, Meena said.
The body of the rebel, aged between 35 and 40 years, was found during search in the area today, he said.
Two rifles, some ammunition and other items were seized during the combing, the SP said.
Others managed to flee, though several of them were suspected to have received injuries in the exchange of fire, police said.
Seven Maoists - five in Kandhamal and two in Balangir districts - were killed on Saturday in encounters with the police.
Two days ago, Patnaik had appealed to the red rebels to shun the path of violence and join the mainstream.
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