As many as three terrorists are still trapped in Hajjin locality of Bandipora district in north Kashmir, officials said on Thursday.
The encounter between security forces and terrorists in Mir Mohalla area of Hajjin, which started around 10 am, is still continuing.
The contingent of security forces comprised units of Army's 13 Rashtriya Rifles, CRPF's 45 Battalion and SOG.
Further details are awaited.
Earlier in the day, two policemen including a Station House Officer (SHO), were injured in a grenade attack by terrorists in Sopore in Baramulla district.