Senior Superintendent police Rao Anwar told reporters that the police killed the terrorists after an exchange of gunfire with them in Malir this morning.
"TTP commander Gul Zaman and another TTP militant Taj Arif Lala, who was wanted in many cases of target killings and kidnappings in the city, were among those killed," he said.
Anwar, an encounter specialist who has conducted several similar operations against terrorists, said the police had carried out the operation after getting intelligence reports about Gul Zaman's presence in the area.
He said a large cache of weapons was recovered from the militants, in addition to bombs and a laptop.
The security agencies have launched a nationwide crackdown on terrorists after a suicide bomber killed 88 people and wounded 200 others at the Lal Shahbaz Qalandar shrine in Sehwan in Sindh last week.