Three soldiers have also been injured in the encounter, according to sources.
Security forces had launched a cordon-and-search operation after receiving specific information about the presence of militants in the area, news agency PTI reported quoting a police official.
A police official stated that the search operation turned into an encounter after militants fired upon a search party of the forces, who retaliated.
This is the second encounter in the Shopian district in the past 24 hours.
Pinjora is around 12kms from Reban village where five Hizbul Mujahideen terrorists were killed on Sunday. Two houses were also damaged.
A joint operation of the army, CRPF , and police was launched early in the morning after a tip-off about the presence of terrorists at Reban village. The militants were killed after a 12-hour encounter.
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