The prisoner identified as Solomon Liliura was shot on Thursday in the hills behind the section 21 settlement in Kimbe.
Along with him was another known criminal identified as Casper Vincent who was wounded in the shoot-out and was recaptured.
Liliura was an escapee from the Lakemata CS facility and has been on the wanted list by Kimbe, Lae, Madang and Rabaul police for a number of serious crimes he had committed in these centres while he was still on the run.
His body is currently at the Kimbe General Hospital Morgue awaiting Coronal proceedings.
Meantime, Vincent is wanted for the murder of a bus crew at section 10 in Kimbe early this year.
He and his gang in the process of holding up a 15 seated bus, shot and killed the bus crew when he resisted handing over the days bus takings.
Vincent is also wanted for other offences including the Able Computing Office armed robbery in Kimbe.
Meanwhile, Caspar is now being admitted to the Kimbe general Hospital and he will be charged with the appropriate charges as soon as doctors release him from hospital.