Security forces also recovered arms and ammunitions from the spot during their search operation.
The encounter lasted for around 30 minutes in a dense forest in the Ralegada area of Malkangiri District on Sunday.
Police said they have recovered two guns and items belonging to Maoists from the spot.
"A Maoist was killed during an encounter between Border Security Force (BSF) and Maoists. We have recovered two guns along with some day-to-day use articles. The combing operation is still on," said Deputy Superintendent of Police (DSP) M. S. Dora
Extra forces were rushed to the spot to intensify combing operations.
Maoists are rapidly expanding their insurgency and could move from remote rural areas to the cities.
Maoist insurgents are estimated to number 7500 hardcore fighters in nearly a third of India's 630 districts. While they have made few inroads into cities, they have spread into rural pockets in 20 of 28 states.
Maoists say they are fighting for the rights of poor farmers and landless labourers. Thousands have been killed in the insurgency since the late 1960s.
Prime Minister Manmohan Singh has described the Maoists as one of the gravest internal security threats to India.
--ANI (Posted on 13-01-2014)