At least three Lashkar-e-Taiba (LeT) terrorists, including Commander Bashir Lashkari, are said to be trapped in a building in the Dailgam village in Jammu and Kashmir's Anantnag district, according to police.
The encounter operation is still underway.
Earlier in the day, a lady identified as Tahira Begam has been killed during the cross firing between the militants and the security forces.
The cordon and search operations are being conducted.
"After receiving specific information regarding presence of militants in Dailgam's Birnhi Batpora, security forces laid a cordon in the wee hours. While the cordon was being laid some militants outside a house fired upon which the security personnel retaliated. In the cross firing one lady sustained injuries and later on succumbed. However, some militants are holed up in the house. Efforts are on to take out the civilians out of this house," police said.
Further details are awaited.
Earlier on June 24, two terrorists, who were holed up inside the Delhi Public School in Srinagar's Panta Chowk, were neutralised by security forces the next day.