The deceased was identified as Tutul, 35, son of Fazlu Monna of Ram Chandrapur village in the upazila.
Tipped off that some terrorists were holding a secret meeting at Mojarajpur to foil the upcoming upazila parishad election, a team of police conducted a drive there, said Inspector (Operations) of Sadar Police Station Md Idris Ali.
Sensing the presence of law enforcers, the terrorists opened fire at them around 1pm, triggering a gunfight.
Police rescued bullet-hit Tutul after the gun battle and took him to Sadar Hospital where doctors pronounced him dead, the police official said.
Police recovered a pistol, a magazine, five sharp weapons and some empty bottles of Phensidyl syrup from the spot.
Tutul was wanted in 17 cases, including of murder, sabotage and arms possession, Idris said.