The militants -- six men and one woman -- were killed during a siege in the Dagestani capital of Makhachkala, RIA Novosti reported.
One of those killed was local militant leader, said a statement from Russia's Anti-Terrorism Committee.
The incident followed a grenade launcher attack and car bombing at a restaurant in Makhachkala Friday.
Violence is an almost daily occurrence in the North Caucasus, with many attacks linked to Islamist fighters who have been spreading across the region.
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