Top terrorist Subrata Bain and one of his associates were arrested at Kalishankarpur in Kushtia town on Tuesday morning.
A responsible source in the Bangladesh Army told that they were arrested after a three-hour long operation.
Further details of the arrests will be disclosed at a briefing at 5 pm, the source added.
Earlier, Subrata was freed from Dhaka jail on a High Court bail in 2001.
He sneaked into India that year as the police launched a manhunt for him.
Though he had been on the run for years, many criminal gangs in Bangladesh had reportedly extorted people in his name.
Subrata himself has reportedly threatened many people over phone from India and Nepal to extort money from them, according to police officials.
FI/MI