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The victim was identified as Subas Bandami, a former cadre of CPI (Maoist), said Malkangiri Superintendent of Police Anirudha Singh.
While three others were released by the ultras last night, another person remained untraced.
Singh said the victim had quit the outfit since sometime and had been in contact with the local police for a formal surrender.
A poster seized from near the body said that Subas was killed for working as an informer to the police.
The Maoists made all five appear before a kangaroo court, before setting three free, police said.
On Thursday, Maoist rebels had killed four persons in the Maoist-infested Rayagada and Koraput districts. While two villagers were hacked to death at Kashipur in Rayagada suspecting them to be police informers, two security personnel were shot dead at Anakadeli in Koraput.
The two deceased were cremated today and the shops and other business establishments in Machkund remained closed in protest of the gruesome incident.
IG (Operations) Y B Khurania today rushed to Koraput to take stock of the measures to tackle Maoist menace in the region. Khurania held discussions on Maoist activities and movements with top police personnel.
On the other hand, the main Opposition parties, Congress and BJP, have targeted the state government for the resurgence of Maoist violence in the state.
Meanwhile, chief minister Naveen Patnaik condemned the incident in Bhubaneswar and said that stringent action would be taken against the culprits involved in the "terrible" crimes.
After the abduction of former Malkangiri Collector
R Vineel Krishna and Junior Engineer Pabitra Mohan Majhi, the Red rebels had laid down certain conditions for release of the duo. The conditions included: release of cadres jailed in various prisons, withdrawal of cases against them and halting combing operations by security personnel. Though the state government had agreed to the conditions with an assurance that they would not turn to violent means, it seems the ultras have violated the agreement.As per reports, the ultras have killed at least 22 people in the state since the abduction of R Vineel Krishna.
