Officials said the encounter took place early today in the Burgam village of the said district when a joint squad of CRPF and District Reserve Group (DRG) of state police was out for operations.
"The encounter is still on. Five Naxals has been killed and their bodies are with the forces. An AK series assault rifle has also been recovered," a senior officer said.
Two DRG men have been injured and have now been evacuated, he added.
The officer said the exact details of the operation will take time to emerge as the encounter spot is deep inside jungle area and cellular phone and wireless connectivity is extremely poor.
Reinforcement teams have been rushed in, the officer said.
The 111 battalion of Central Reserve Police Force (CRPF) is leading the operation, they said.
"The skirmish took place at around 2 PM between a team of state police's District Reserve Group (DRG) and ultras in the jungles of Burgum village under Aranpur police station limits," Inspector General of Police (in-charge) Bastar Range Sundarraj P told