The identity of the terrorists was yet to be ascertained.
The accused identified as Mohd Mustaqeem, originally from Balarampur, Uttar Pradesh, was also in touch with the IS entities of Kashmir, added sources.
Terrorist fired on a joint 'naka' of police and the Central Reserve Police Force at Pantha Chowk area late on Saturday night.
Officials said the entire forest area from Mendhar to Thanamandi remains under a strict cordon and a massive search operation is on to neutralise the terrorists moving from one place to another in an attempt to escape the dragnet.
Security forces launched a cordon and search operation in the Zadoora area of Pulwama district in south Kashmir during the night following specific information about the presence of terrorists there, a police official said.
Four AK rifles, magazines, grenades, pistols, a satellite phone, a GPS device, geo-satellite maps of Jammu and Kashmir, besides Pakistan-made edible and electronic items were recovered from them.
"As the security forces were busy searching the area, the militants in hiding opened fire triggering a gunfight which is on. So far one militant has been killed," the officer said.
1 jawan was injured in a gunbattle with Naxals in Chhattisgarh's Kanker district.
A 150-metre long underground tunnel suspected to be used by terrorists for infiltration was detected near International Border in Jammu and Kashmir's Samba sector on November 22.
The security forces had launched a cordon-and-search operation at Hanjin village in the Rajpora area of Pulwama following information about the presence of the terrorists there, a police official said.
Two army men including an officer were injured in an ongoing fierce gunfight in north Kashmir frontier Kupwara district late Friday.
Police said Sajjad was active in the Valley for a long time.
This is for the first time in recent months that a terrorist has laid down his arms during an encounter.
Security forces launched a cordon and search operation in Laroo area of Kulgam district in south Kashmir following specific information about the presence of terrorists in the area, he said.
Security forces launched a cordon and search operation in Kalaroos village of the district following specific intelligence inputs about the presence of terrorists in the area, a police official said.
Pakistan has been resorting to heavy mortar shelling along LoC in Jammu and Kashmir for the past over one month.
Earlier, in a major joint offensive, separate teams of nearly 600 personnel belonging to the District Reserve Guard (DRG), Special Task Force (STF) and Commando Battalion for Resolute Action (CoBRA) -- an elite unit of Central Reserve Police Force, launched an anti-Naxal operation from three sides towards Elmagunda after getting inputs about a huge gathering of ultras there on Saturday.
An encounter broke out on Wednesday between militants and security forces in Awanitpora area of south Kashmir's Pulwama district but no casualties have been reported so far.
Two terrorists were killed in an overnight gunfight in Hajin area of Bandipora district, officials said.
The incident occurred a day after Naxals ambushed a team of security forces, killing four BSF personnel.
In this photograph, which is being circulated on social media, Manhas, a commando with the 210th CoBRA battalion of the Central Reserve Police Force (CRPF), is seen sitting in a hut alone without any Naxal in the frame.
Three AK-47 rifles and one Underbarrel Grenade Launcher were recovered from the slain terrorists.
Weapons and other incriminating material were recovered from the spot.
The JeM terrorists also carried 'armoured piercing steel core ammunition' which can go through Level 3 protection bulletproof vehicles that police and other security forces use, they said. The ammunition was in large quantity and could have posed a grave threat, top police officials said.
SPO Ahmad succumbed to injuries while SI Parihar has been admitted to the army hospital.
Search operations were on in the area.
A police spokesperson said two of the four recent cases of target killings in Srinagar and Bandipora have been solved with the elimination of the terrorists involved in these incidents.
Families of two civilians killed in the Hyderpora encounter in Srinagar held a protest here on Wednesday, demanding justice for the victims and the return of their bodies.
Four terrorists, including a Pakistani national, were killed in two separate encounters in Jammu and Kashmir's Srinagar and Kulgam districts during the past 24 hours, a senior police official said on Sunday.
A militant belonging to Pakistan-based Lashker-e-Tayiba was killed in an encounter with security forces in Budgam district of Kashmir Valley on Thursday, police said.
Five militants were killed in a day-long fierce gunfight in frontier north Kashmir Kupwara district on Saturday.
Three militants were killed in a fierce gunfight in south Kashmir Pulwama district on Tuesday.
At least 2 CRPF trooper was dead on Saturday in a suspected militant attack on a forces' convoy on the Jammu-Srinagar highway near EDI Pampore. A CRPF spokesman Bhavesh Choudhury said that 10 others were injured in the attack.
A top Hizbul Mujahideen commander was among two militants killed in a fierce gunfight in south Kashmir area of Tral on Monday morning. An army officer is also said to have been wounded in the gunfight.
The deceased CRPF personnel are assistant sub-inspectors Mahadeva P, 50, and Madan Pal Singh, 52, and head constable Saju O P, 47, officials said.
The security forces did not suffer any casualty in the encounter.
The anti-terror operation is still on.
One civilian and two militants were killed in a nightlong gunfight in south Kashmir Kulgam district.
One soldier was killed and another wounded in the encounter. The injured trooper was evacuated to hospital for treatment.
One of the most wanted terrorist, Mudasir Pandit, and a Pakistani ultra were among the three terrorist killed in an overnight encounter with security forces in the Sopore area of Jammu and Kashmir's Baramulla district, police said.
