The encounter started after army and police launched an operation based on a tip-off about presence of militants in Bongam village, police spokesman said.
"The encounter ended with the elimination of a militant identified as Nisar Ahmad Wani, a resident of Adipora in Kunzer. He was affiliated with Hizbul Mujahideen," he said.
Three Army soldiers also sustained injuries during the gunfight while ensuring no damage is caused to the locals of the area, a defence spokesman said.
"The injured soldiers have been immediately evacuated to 92 Base Hospital for the treatment," he said.