The authorities conducted 'area clearance operation' over the last two days, uncovering a tunnel, homemade weapons, huts, rations, utensils and other items used by the terrorist in the training, the newspaper said.
More than a million Muslim Rohingya live in apartheid like conditions in Rakhine, where many majority Buddhists consider them interlopers from Bangladesh. The insurgent group was not immediately available for comment.
The insurgents attacked border guard posts in October, provoking a military crackdown in which hundreds were killed, more than 1,000 houses burned down and 75,000 people forced to flee to Bangladesh.
The United Nations has established a fact finding mission to investigate crimes against humanity allegedly committed by the security forces during the counter offensive. The administration of Nobel Peace Prize laureate Aung San Suu Kyi has rejected the allegations and opposes the mission.
Photos published on the newspaper's front page showed materials found at the site, in the remote Mayu Mountain range, including 20 black skiing masks, gun powder and long wooden guns believed to have been used during the training.
One man who attacked security forces inside the 80-feet (24.4 metre) tunnel with a machete was 'killed in self defence' on Tuesday, the paper said, while two men were killed on Wednesday.
The operation continues.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)