Security forces launched a cordon-and-search operation in Pinjora area of Shopian, in South Kashmir, this morning after receiving specific information about the presence of militants in the area, a police official said.
He said the search operation turned into an encounter after militants fired upon a search party of the forces, who retaliated.
The exchange of fire is going on and further details are awaited.
This is the second encounter in Shopian district in the past 24 hours.
Five Hizbul Mujahideen militants, including a self styled commander, were killed in the gunbattle with security forces in Reban area of the district on Sunday.