There are unconfirmed reports about injuries to at least four policemen and a civilian at the encounter site.
Two soldiers were killed in an encounter that broke out between militants and security forces in north Kashmir's Bandipora district on Tuesday, police said in Srinagar. One militant was killed in the gunfight.
According to IANS, security forces were fired at when they launched the operation in Parraypora village after a tip-off about holed-up militants.
Firing was going on when last reports came in, the official said, adding that further details were awaited.
On Sunday, three army jawans were martyred and two others injured in an encounter with militants in Kulgam district.
The Army also opened fire leading to an encounter, which is ongoing.
It has not been cleared yet that how many terrorists are there but the affected region has been cordoned off by the security forces forces. Director General of Police S.P. Vaid was quoted by PTI saying that the security forces have achieved a "major success" by gunning down the four militants.