Following specific information about militant presence in Bijbehara town, the security forces had surrounded the Baghander Mohalla late on Wednesday.

At day break, the militants were challenged and they fired back triggering the encounter.

The slain terrorists were identified as 25-year-old Kashmiri men Safder Amin Bhat from Bijbehara itself and Burhan Ahmad Ganaie of Malipora Hablish in Kulgam.

Searches were underway in the area and mobile Internet services have been suspended in the district as a precautionary measure.