In the encounter with militants, the security forces, launched a cordon and search operation in Dar Ganie Gund village in Tral's Aribal area in the south Kashmir district Sunday morning, a police official said.
He said the operation was launched after receiving specific intelligence inputs about the presence of militants in the area.
The encounter broke out after the militants fired upon the forces who retaliated, the official said.
The gunfight is on and further details are being collected, he said.