Encounter broke out between security forces and terrorists Sunday late evening. Security forces then launched a cordon and search operation in the forest area of Handwara.
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The security forces have cordoned off the area and search operations are on.
There was some exchange of fire after the cordon was established, the operation was halted for the night, a police official said.
Two militants were killed and three policemen including an SHO injured on Thursday in a gunfight that broke out on the outskirts of the city after a BJP leader was attacked.
Shahnawaz Ahmad Mir, a resident of Bugam in Kulgam, was apprehended during random checking at naka point set up at Takia Adijan in the district, a police spokesman said.
Acting on a specific intelligence input, a small team of the Army along with the elite Special Operations Group cordoned off the Hatwar area in Awantipur and carried out a "surgical attack" on a house, the Army said.
Reports suggest that two terrorists managed to flee the spot after firing upon the patrolling party, while one was neutralised by security forces in retaliatory fire.
It was learnt that one LeT militant was injured in the encounter and this morning police came to know about the death of the said militant.
Jammu and Kashmir Director General of Police (DGP) S.P. Vaid said: "A terrorist, Mushtaq Ahmad Chopan, died in a grenade explosion when challenged by sentry while trying to escape from Tral police station."
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