The Interior Ministry in the Russian republic of Daghestan says that a wanted militant and a member of the security forces were killed overnight in a village near Makhachkala.
The suspected militant, identified as Yusup Martazaliev, was wanted for being a member of an illegal armed group.
Security forces traced him to the village of Shamkhal early on the morning of August 4.
Martazaliev opened fire on the troops and was killed when security forces returned fire.
One member of the security forces was also killed and another wounded in the gun battle.
The Interior Ministry said Martazaliev was the leader of a group engaged in terrorism and sabotage.
A special operation was launched to find Martazaliev's accomplices.
Violence is frequent in Daghestan and neighboring republics in Russia's Caucasus region despite claims from Moscow that the security situation is improving.
Based on reporting by ITAR-TASS and IFX Rus