A joint cordon and search operation (CASO) is being conducted by the security forces in Sopore area's Amarghad of Jammu and Kashmir's Baramulla district.
At least two to three militants are believed to have been holed up inside a building.
A joint operation is conducted by 179 Battalion Central Reserve Police Force (CRPF), 52 Rashtriya Rifles, Special Operation Group (SOG) of the Jammu and Kashmir Police since 04:30 a.m. Saturday morning.
Heavy fire is being exchanged between the security forces and the militants.
One militant has reportedly been killed, but no official confirmation has come in as yet.
Further details are awaited.