Security forces launched a cordon and search operation in Soimoh village of Tral, 36 kms from here, following information about presence of some top Hizbul Mujhaideen militants in the area, a police official said.
He said as the security forces were closing on the house where the militants were hiding, the ultras opened fire.
The security forces retaliated, killing two militants.
The operation was in progress when last reports came in.