The gunbattle at Kellar area in Shopian, around 50 km from Srinagar, had started this afternoon. Security forces said the terrorists had holed up in two buildings in a residential area. The operation was carried out by the police, army and the CRPF.
This was the second big encounter in Kashmir today. Earlier, Khalid, a top terrorist of Jaish-e-Mohammad, was killed in north Kashmir's Baramulla district. He was believed to have plotted a series of suicide attacks in Kashmir, including one last week near the Srinagar airport, in which a soldier was killed.
Sources say the forces managed to track down Khalid after a he visited a girlfriend. A woman he was romantically involved with told the police that he was likely to visit her this morning.
Last month, a terrorist was caught during an encounter that in Shopian - a first in recent years. Two other terrorists were killed. Police said the terrorist, Adil, was 17 and had joined the group in May.