An encounter broke out between terrorists and security forces at Nadigam village of Shopian district in Jammu and Kashmir in the wee hours of Tuesday.
Two to three terrorists are believed to be holed up in the area.
The Valley has been witnessing a spurt in terror activities for the past few months.
On November 18, two terrorists associated with terror outfit Al-Badr were killed in an encounter in Rebban area of Shopian district.
On the same day, a Central Reserve Police Force (CRPF) jawan lost his life after terrorists opened fire on a CRPF camp at Railway Colony in Pulwama's Kakapora area.