The deceased was identified as Rubel, 31, son of Mujibur Rahman of Jamirdia village in the upazila.
Shah Kamal Akand, officer-in-charge of Detective Branch, said tipped off that a group of drug peddlers gathered in the area around 2:30am a team of police raided the area.
Sensing presence of the law enforcers, drug peddlers opened fire on them while fleeing the spot, forcing them to fire back in self-defense, the OC added.
Police recovered bullet-hit Rubel from the spot and took him to Mymensingh Medical College Hospital where doctors declared him dead.
Police recovered 200 Yaba tablets and 100 gram heroin from the spot.
He was wanted in seven cases, he said.