"An encounter broke out between security forces and militants at Wangam in Shopian after the security forces launched a search operation following specific intelligence inputs," a police official said.
In the gun battle, one militant identified as Sadam Hussain Mir, a resident of Chatripora Shopian, belonging to Hizbul Mujahideen, was killed, the official said.
Two army personnel were injured in the encounter, he said.
Security forces have recovered one assault rifle, five AK 47 magazines, 119 AK 47 rounds and one hand grenade, the official said.