The injured was identified as Alauddin alias Alal, 55, son of Nazlar Rahman of Satarpara village. He was wanted in 12 cases, including that of robbery and drug possession, police said.
Touhidul Islam, superintendent of police of the district, said police arrested Alal along with 510 Yaba tablets from his residence on Saturday evening.
Later, a team of police along with Alal went to Sakoa around 12:30am on Sunday to recover arms.
Sensing presence of the law enforcers, the associates of Alal opened fire on police, forcing them to fire back that triggered a gunfight.
At one stage, Alal sustained bullet injuries while trying to flee the scene. He was taken to Gaibandha Modern Hospital.
Two police constables—Nazrul and Rabiul---were injured in the incident, the SP claimed.
Police recovered 1000 Yaba pills and three sharp weapons from the spot, he said.