"A contact was established with the terrorist who was holed up in a house at the village (Palpora) and in the ensuing encounter, the terrorist was killed," defence spokesman Lt Colonel J S Brar said.
The militant, Ghulam Nabi War alias Nabba, was active since 2003 and was the district commander of Hizbul Mujahideen in the area.
"War used to operate in concert with Mushtaq 'Killer', who was gunned down last year," the spokesman said.
One AK rifle and a large quantity of ammunition have been recovered from the slain militant, he added.
