The gun-battle erupted under Mohana police station area in Gajapati district, about 200 km from here, after security forces raided a rebel camp, a senior police official told.
Five rebels were killed and two policemen sustained minor injuries during the fierce exchange of fire, he added. Some rebels escaped into the forest.
Maoists are active in more than half of the state. The district of Gajapati is considered one of their strongholds.
Source: IANS