The LeT "commander" identified as Mehmood Bhai, a resident of Pakistan, was killed in an anti-militancy operation in Tarzoo village in Sopore, some 55 kms from here, the spokesman said.
The gunfight erupted last evening when militants fired at security forces who were zeroing in on them, he said.
The operation was suspended for the night but security forces maintained the cordon to prevent the militants from escaping.
Mehmood Bhai tried to break the cordon at around 0200 hours and was killed in the ensuing gunbattle, the spokesman said.
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The officials did not comment on the fate of the other militant who had engaged the security forces for several hours in the morning but sources said he managed to escape from the scene.
The killing of the LeT commander comes close on the heels of two successful anti-militancy operations in south Kashmir last week.
Three top Hizbul Mujahideen militants were killed in Tral area in Pulwama district on June 19 while a Pakistani "commander" of LeT was arrested in Kulgam district the following day.