"We have recovered the body of another militant, which takes the number of militants killed in the operation to four," the Army official said.
The operation was launched yesterday and it was resumed this morning following reports that more militants were hiding in the area, the official said.
He said the area of operation was expanded to ensure that no militant get away from the security forces' cordon.
Three civilians and a soldier were injured in the operation.
More From This Section
Director General of Police S P Vaid had said the militants were planning a suicide attack like the one carried out on an Army base in Uri last year that left 19 soldiers dead and several others injured.
"A big tragedy has been averted. Like the suicide attack on the Army base last year, they (militants) had similar plan this time also but police and Army got information before hand," Vaid told reporters.
"Specific information was received by the Army from the sources about the presence of suspected terrorists in the adjoining area of Kalgai camp late in the night of 23 September. The Army set up a cordon in the area by midnight and intercepted the terrorists while they were moving.
"On exchange of fire, the terrorists took shelter in a house where civilians were there and they took the residents hostage," Deputy Commandant of Army's 12 Infantry Brigade Harpreet Singh said.
"After the daylong fire-fight, four likely foreign terrorists were eliminated and large quantity of warlike stores was recovered from them, including IEDs," Singh said.
He said theterrorists had infiltrated, well equipped with explosives, and intended to carry out a major attack on an Army camp at Kalgai.
"The alertness and resilience of Army troops who engaged and neutralised the terrorists resulted in foiling another devastating terror strike in Uri sector," he added.