A most wanted gangster Nayeem was on Monday killed in police encounter in Telangana's Mahbubnagar district.

Reports say that Nayeem was shot dead in Shadnagar town, 60 km from the state capital of Hyderabad.

There are also reports suggesting that at least two terror suspects have been gunned by the security forces in an encounter.

The NIA personnel surrounded a house and exchanged gunfire before finally gunning down the militant.

The officials forcibly vacated neighbours from the place. Grey Hounds police officials also took part in the operation.

The house where the firing took place is said to belong to one Basha.

Nayeem was a former naxalite who later took to crime in and around Hyderabad in the last 15 years.