Security forces had launched a cordon and search operation in Nowgam area.
Two terrorists were killed and four soldiers were injured in an ongoing encounter between terrorists and security forces in Nowgam area of Jammu and Kashmir's Budgam district.
At least three terrorists are believed to be trapped inside the residential building in the area, according to news agency ANI.
Security forces had launched a cordon and search operation in Nowgam area following information about presence of militants there, a police official said.
He said the two militants were killed in the ensuing encounter and their identity and affiliation were being ascertained.
The firing has stopped for now and search operations are still underway at the sector to sanitise the area.
On Thursday, three terrorists belonging to Hizbul Mujahideen and Lashkar-e-Taiba were killed in an encounter with security forces in Shopian district.
With inputs from ANI