A fierce gunbattle is underway at the site, a senior police officer said.
Militants opened heavy fire on security men deployed at the army unit in Nagrota belt. In the gunbattle that followed, two army jawans were injured, one of them critically, the officer said.
Nagrota is the headquarters of the Army's 16 corps.
In view of the attack, the Jammu-Srinagar National Highway has been closed for traffic in the area.The district administration has closed all schools in Nagorta tehsil as a precautionary measure.
An alert has been sounded in Jammu city.
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