Indian Army's 3 Rashtriya Rifles (RR) and Jammu and Kashmir Police are jointly conducting the ongoing operation, which started in the wee hours.
Security forces have recovered arms and ammunition from the encounter site. More details are currently awaited.
The Valley has been witnessing a spurt in terror activities for the past few months. On Tuesday, One Army jawan was killed in action and four terrorists were killed in an encounter at Nadigam village in Shopian district.