Nusrat Osman, 47, was abducted in the southern city of Blantyre on Friday, the Malawi Police Service (MPS) said.
The mother-of-two, who reportedly works for a local auditing firm but was originally from Leicester, was abducted around lunchtime on 11 September.
She was taken at “approximately 12.30pm at Mount Pleasant,” by four men believed to have used a grey Nissan Dualis, the force added.
The suspects had not contacted Ms Osman’s family or authorities and the motive was not clear.
The MPS was offering a reward of 30m Malawi Kwacha – which is around £12,800 – to anyone giving them “credible information” that could help with the rescue operation and arrests.
The Malawi police put out a statement saying Ms Osman was rescued in Mpemba/Chadzunda, just outside of Blantyre, on Thursday during an “intelligence led police operation”.
It said there was a shoot-out between police and the kidnappers “who were armed with AK47 rifle and a Girsan MC pistol”.
They were shot and taken to hospital where they died from their injuries, police added.
During the same operation, Dr Mlowoka Noel Kayira, deputy general of the police, suffered gunshot wounds and is in hospital in a stable condition.
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Osman’s brother, Shobi Jiwa, told Malawi news outlet Nation Online she was rescued in an operation in which the deputy inspector general was shot and wounded.
Malawi police had said they were looking for four men who had used the grey car to kidnap her.
Police said investigations are ongoing and more details will be provided about the suspects.
So far, no information has been released on the motive for the abduction.
