Bhubaneswar, Sep 18 (IANS): A Maoist leader with Rs.4 lakh bounty on his head was killed in a gun battle with police in Odisha's Malkangiri district, an official said Thursday.

The exchange of fire took place Wednesday in a forested area near Madkapadar village after the rebels opened fire at police engaged in anti-Maoist operations, Inspector General of Police (south-western range) Yashwant Jethwa told IANS.

The body of Erra Madkami alias Sundhi Dalai, a local area committee member of the outlawed Communist Party of India-Maoist (CPI-Maoist), was found during a search at the site after the gunfight ended, he said.

He was one of the most wanted Maoists and was carrying a reward of Rs.4 lakh on his head, Jethwa said.

Police also recovered one sten gun, a rifle, some ammunition, kit bags and Maoist literature at the site.

Maoists are active in more than half of Odisha's 30 districts. The district of Malkangiri, over 600 km from here, in considered one of their strongholds.