Security forces in the Daghestani capital, Makhachkala, said they killed two militants during a gun battle.
Russia's Interfax news agency cites an unidentified source in the Daghestani law enforcement agencies as saying that one of the slain militants is Eldos Zulfugarov, who was wanted on terrorism charges.
In a related report, Daghestani police said they destroyed a militant base in the forest near the village of Gubden.
Police said they found food and clothing and that the base could accommodate up to 15 fighters.
Russia continues to experience difficulties in stabilizing the situation in its Caucasus republics.
Law enforcement officials in Chechnya, Daghestan, Ingushetia, and Kabardino-Balkaria face assassination, while bombings claim scores of civilian lives each year.
With Interfax and ITAR-TASS reports