The gun battle took place in Etapalli tehsil when a group of "suspected" Maoists opened fire at a police patrol party, an official at Gadchiroli police control room said.
Police retaliated and in the exchange of gunfire, which lasted for an hour, a "suspected" Naxal was killed, he said.
The official said security personnel have recovered the body of the Naxal, whose identity has not been established yet, a rifle and some Maoist literature from the encounter site.
Police had intensified combing operations in the forest area after a CRPF jawan was injured in an encounter with Naxals recently.
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