The deceased has been identified as Yakub Ali Kazal, 28, who hailed from Garadob village in Gangni.
He was accused of raping a schoolgirl and throwing acid on a woman, said Sajedul Islam, inspector (investigation) of Gangni Police Station.
"Kazal died during a shootout at his village on early Saturday. Four police personnel were also wounded in the gunfight and received first aid," he told bdnews24.com.
"Police took him along on a raid to recover weapons. His accomplices opened fire on police after they arrived at Garadob village forcing them to retaliate," he added.
A doctor declared Kazal dead when he was taken to the Gangni Upazila Health Complex, according to the police officer.
A shotgun, two rounds of bullets and a machete were recovered from the site of the shooting.