Acting on specific information about the presence of militants in Drugmulla village of Kupwara, 81 km from Srinagar, a joint team of police and army cordoned-off the area, an army official said.
He said as the security forces were conducting a search operation, the holed-up militants fired at them, triggering a gunbattle.
During the encounter, five militants were killed, the official said, adding two soldiers also received injuries and they have been shifted to a hospital for treatment. Their condition is stable, the official said.