The encounter took place on Sunday evening in the Kedwara forest area in this district, the official said.
According to the officials credible information was received that members of Perimili and Aheri dalams of Naxalites were camping in a forest area between Mane Rajaram and Perimili armed outpost.
Following the tip-off, two units of the C-60 Force of the police were sent from Pranhita to conduct a search operation in the forest area.
While the search operation was going on the Naxalites opened fire on police, following which the police retaliated, he said.
After the exchange of fire, the bodies of three Naxalites were recovered from the spot along with weapons and other material, the official further said.
The deceased identified as Bitlu Madavi, a commander of Perimili Dalam and other two bodies were identified as Vasu of Perimili Dalam and Srikant of Aheri Dalam.
"Bitlu Madavi was a prime accused in the murder of student Sainath Narote that took place on March 9 this year along with two incidents of arson of road construction equipment at Visamundi and Alenga that occurred in February and March this year ," he said.