"On Thursday night in a Daghestani village, local police forces killed Renat Ismailov, a member of an illegal armed formation, who was on a federal wanted list," the source said.
He added that the militant was killed after opening fire on police who had demanded he surrender to them.
Daghestan and Ingushetia, which both border Chechnya, have seen a sharp increase in attacks on law enforcement and military personnel of late.
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Infographics: Nobel Peace Prize
During the 11th Annual Meeting to be held in Sochi from October 22 to 24, experts of the Valdai International Discussion Club will focus on whether the global community will develop ground rules for the world politics or whether it will be a game without any rules where everyone fend for themselves.