Security forces launched an anti-militancy operation in the wee hours in Hadoora area of Ganderbal district, 25 km from here, following information about presence of militants in the area, an army official said.
He said as the security forces were closing in on the position of the militants, the latter opened fire on the troops who retaliated.
"In the ensuing gun battle, two militants were killed," he said.
The official said the slain militants have been identified as Abu Anas and Abu Ali, both foreigners, who were associated with the Lashkar outfit.
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"It (killing of militants) is a good success for the security forces especially as it comes ahead of the January 26 (Republic Day)," he said.
The official said the security forces followed the standard operating procedure while dealing with the militants to ensure that the civilians and their property did not suffer any damage during the operation.
This is second major encounter in Kashmir this year.
Security forces killed three local militants in an encounter in Pahalgam area of south Kashmir on January 16.