A local militant identified as Arif Lalihaari was also killed in the gunfight that took place in Hakripora village.
State police chief S.P.Vaid said he would provide further details on the two militants only after the bodies are recovered from the encounter site.
Acting on specific information about the presence of Dujana and Lalihaari, the forces surrounded the village at about 3 a.m. upon which they were fired at, according to security officials.
"The operation is ongoing," the officials said, adding: "The process of recovering the bodies have started."
Two houses in the village were destroyed in the gunfight, but no civilian casualties were reported.
Dujana was wanted in over three dozen attacks on security forces and civilians and carried a reward of Rs 15 lakh.
He was the most wanted militant commander in the state.
Once Dujana's body is recovered and identified, it would be the biggest success for the security forces in their anti-militancy operations, the officials added.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.