Security forces in a predawn operation on Wednesday engaged a group militants in a gunfight in Kulgam.
An official said a joint team of the Army, police and CRPF encircled Gopalpora area and zerored in on hiding militants, triggering an encounter.
Preliminary reports suggest one militant has been killed. However, the police said it has not retrieved any body so far and was ascertaining details about the affiliation of the militants trapped.
"The operation is on," said the police.