At least six stone pelters were injured as they clashed with the security forces near the encounter spot.

There were reports of three terrorists being trapped in the area and so far two have been neutralised, reports said, adding that fresh firing has started in the area even as clashes are also going on at some distance from the encounter site.

Police said that the gunfight broke out after Army’s 42 RR, SOG, and CRPF launched a cordon-and-search operation following inputs about the presence of a group of Hizbul Mujahideen terrorists in a hideout.

The injured soldiers were rushed to Army’s 92 Base Hospital at Srinagar from where one critically wounded soldier was airlifted to Army’s Command Hospital at Udhampur for specialised treatment.

The police said that the operation is in the final stages and one or two militants are still believed to be hiding in the area and are engaged in the gunfight.

Sources also confirmed that two terrorists have been killed and the operation is on.