The gunbattle broke out at Dardpora in Lolab area of Kupwara on Friday night after security forces launched a search operation there, the official said.
A major tragedy was averted in north Kashmir's Kupwara district on Tuesday following a timely detection of four powerful improvised explosive devices by the army and local police.
Seven militants were killed by the army in an ongoing fierce encounter in north Kashmir's Kupwara district on Monday.
"Two militants of Jaish-e-Mohammed hiding inside the house began indiscriminate automatic gunfire at the security forces. The cordon around the house was further tightened, resulting in a sustained firefight at the end of which both militants were killed," a senior police officer said in Srinagar. Arms and ammunition,including two AK-47 rifles and two magazines were recovered from the encounter site.
Hundreds of locals assembled outside the police station at Lolab in Kupwara district, 120 km from Srinagar, and demanded that they be shown the bodies of the slain ultras, police sources said.
Normal life was disrupted in Kashmir Valley on Friday due to a strike called by hardline Hurriyat Conference to protest the encounter killing of seven men by the Army in Kupwara district.