An encounter broke out on Tuesday evening between security forces and militants in central Kashmir's Budgam district, police said.
Security forces launched a cordon-and-search operation in Redbug area of Budgam in evening after receiving specific intelligence inputs about the presence of terrorists in the area, said a police official who refused to be identified.
He said the search operation turned into an encounter as the security forces were fired upon by the militants.
Two militants are believed to be trapped there, the official said.
There were no reports of any casualty so far.