A terrorist was on Friday gunned down by security forces after an encounter broke out near the Bann toll plaza on the Jammu-Srinagar National Highway.
A policeman has also sustained injuries during the encounter, which started at around 7 am.
Troops of 137 Battalion, 187 Battalion of CRPF and Jammu and Kashmir Police are involved in a joint operation.
Informing about the incident, Jammu and Kashmir tweeted, "Police intercepted a Srinagar bound truck at Bann Toll Plaza on Jammu-Srinagar highway. The truck bound terrorists fired on police triggering an encounter. One policeman injured, one terrorist killed. Encounter going on. More details to follow."
Confirming the incident, sources in the Central Reserve Police Force (CRPF) said that the area has been cordoned off and a search operation has been launched.
The security forces suspect that a total of three terrorists were moving in the truck. While one has been killed, the two other suspects have run away in the nearby jungle area.
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The local traffic movement has been stopped following the encounter.
Further details are awaited.