The militants were arrested from Chanapora locality of the city during the intervening night of September four and five, police sources said.
While one militant hailed from Chanapora, the other one had come from Sopore town in north Kashmir, sources said.
An AK rifle and a pistol were recovered from their possession, they said.
During questioning, the two militants led the police to a shop in Maisuma where they had stored two hand grenades for possible use in the commercial hub of the city, sources said.
Although Lashkar has not commented on the German Embassy organised concert 'Ehsaas-e-Kashmir,' three militant outfits issued a threat earlier this week against holding the event.
Al Nasireen, Farzandan-e-Milat and Shuhda Brigade-- considered to be Shadow outfits of LeT -- threatened to target western tourists in Kashmir if the German Ambassador to India remained adamant about holding the event scheduled tomorrow.
