The hideout was busted during a joint search operation by army and special operations group of J-K police at Suranthal in Marhote area of Surankote late Sunday evening, the officials said.
While 63 of the slain terrorists belonged to banned Lashkar-e-Taiba, 24 others were affiliated with Jaish-e-Mohammed.
A terrorist was killed on Wednesday in an encounter with security forces in Anantnag district while another ultra was trapped in a cordon in Sopore area of north Kashmir, police said.
"We have identified the terrorists behind the attack. They are from the Lashkar, led by a Pakistani terrorist named Saifullah. We are on the job and they will be neutralised soon," Inspector General of Police (IGP), Kashmir Zone Vijay Kumar said.
The gunfight broke out late Saturday evening after security forces cordoned off the house.
"Our handshake with Indian Union was subject to certain conditions," he said.
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