The encounter triggered protests in the area with some youths pelting stones at the security forces.
"Two militants belonging to LeT have been killed in the encounter," police said.
They said the deceased have been identified as Gulzar Ahmad Bhat, a resident of Tilangam and Showkat Ahmad Lone, a resident of Lelhar areas of the district.
Police said the two militants were killed in the paddy fields between Ratnipora and Naru villages, where they were trapped by the search parties early this morning after the gunfight resumed.
Acting on specific input about the presence of militants in Ratnipora area of the district, a joint team of police and army cordoned off the area and launched a search operation late yesterday.
As the search operation was on, the hiding militants fired at the security forces. The forces retaliated triggering an encounter, the police said.
The gunbattle stopped late last night but resumed this morning with the first light of the day. It ended with the killing of both the militants.
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