The two were taken into the forest, which was combed by state police, the force's spokesman said.
Police in southwestern Nigeria said Tuesday they had freed two Indian nationals who had been kidnapped in the region last week.
Gunmen abducted the two men last Wednesday as they drove out from their farm in Ibadan, the capital of Oyo state.
The two were taken into the forest, which was combed by state police, the force's spokesman, Olugbenga Fadeyi, said.
An exchange of fire ensued with the help of the military, leaving a soldier wounded, he said.
Two bodies were recovered from the forest, Fadeyi said, adding that their identity was not immediately clear.
Hundreds of Indian nationals live and work in Nigeria, where ransom kidnapping of foreigners is common.
The victims are usually released unhurt after the payout, but the police rarely confirm whether any money is paid.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)