The security forces had launched a cordon and search operation in Bhagatpura in Handwara area of the district based on a specific intelligence input about the presence of terrorists there, he said.
As the security forces were conducting the search operation, terrorists fired upon them, the official said.
The security forces retaliated and in resulting encounter, two terrorists were killed, the Army official said.
The gunfight is over and the area is being sanitised, the official said.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.