Three militants and two civilians were killed in an encounter between a group of heavily armed terrorists and security forces in northern Kashmir's Baramulla district early on Tuesday morning.

Heavy exchange of fire between the two sides started after the forces cordoned off Kuil Bandipora village late on Monday night acting on specific information about militants' presence in the area, official sources said.

The security personnel later blew off the house where the militants were hiding, they said.

The bodies of three militants were recovered from the debris of the house, the sources said.

They added that two civilians were also killed in the exchange of fire.