The incident took place yesterday near Malivalasa under hilly and tribal-dominated Dumbriguda mandal of the district.
The deceased were identified as G Balaram (49) and Korra Sibbo (51), both natives of Gativalasa village. Their associate G Damodhar, who suffered serious injuries, was taken to a local government hospital, from where he was later shifted to King George Hospital here for better medical care.
The sources, quoting reports received here, said Balaram, Sibbo, Damodhar and a few other tribals were on their way to the weekly market in Araku town.
However, the bear also attacked Sibbo, Damodhar and two other tribals. While Sibbo later died, Damodhar sustained severe wounds and the two others escaped with minor injuries, they said.
Divisional Forest Officer S Santharam said a team is being sent to drive away the bear from the area.
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