The encounter broke out after security personnel launched a cordon and search operation in Dar Ganie Gund village after the police received inputs about the presence of militants in the area.
An official said the suspected militants opened fire on security personnel, who retaliated.
More details are awaited.
On Saturday, security forces launched cordon and search operations in Jammu and Kashmir’s Shopian and Pulwama districts. The move came a day after the bullet-ridden bodies of three policemen, abducted by suspected militants on Thursday night, were found.