"Two more terrorists have been killed in the gunbattle which began post midnight," Srinagar-based Defence Spokesman Lt Col N N Joshi said.
He said the troops posted along the LoC intercepted the militants while they were trying to sneak into the Valley from across.
"An encounter erupted and during the exchange of fire, four terrorists have been killed so far," he said.
The spokesman said four AK-47 rifles have been recovered from the site of the encounter.
The identity of the slain militants has not been ascertained so far, the spokesman said.