Two others narrowly escaped but troops are still on hot pursuit of the escapees.
The combined force of troops from the 24th Special Action Force based in Pattani, police and volunteers encircled a target at Ban Koknod village in Nong Chik following a tipoff that it was used as a hideout for the militants.
Gunshots were heard as government force moved closer in a pincer movement. After the gun battle, some militants managed to escape leaving behind two dead, one was identified as Rusari Berosameh.
Five militants surrendered.
They were later escorted to the Special Action Force base for questioning.
Authorities in the areas were placed on heightened alert with stepped up road checkpoints as they fear of revenges by the southern militants after their heavy loss today.