Three rifles and one Under Barrel Grenade Launcher (UBGL) have been recovered from them, they said.
No army official has been killed or injured in the operation.
The encounter started this morning after security forces launched a cordon and search operation at Khushi Mohalla in the district, about 35 kms from here, following information about presence of militants there, police said.
One militant was killed in the gunbattle by the afternoon, police said.
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