The encounter started on Friday evening after Army troops and a special operation group of the state police jointly launched a search operation in the forest area following inputs of militants presence in a hideout there, the spokesman said.

The spokesman said reinforcements have been rushed to the area and the operation against holed up militants, believed to be about six in number, continues.

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In another encounter, he said two JEM militants including a Pakistani national were killed in a three-hour long gun battle at Bontingoo village of Sopore in North Kashmir's Baramulla district.

The gunfight took place around 6 pm when militants, hiding in a house of Rouf Ahmad Lone, opened fire on a joint search party of police and Army, the spokesman said, adding during the gunfight the house was completely razed.

Bodies of two hiding militants, identified as Bilal Ahmad Malla, a local militant, and his Pakistani associate Abu Bakhti, were recovered from the debris of the house on Saturday morning.

Two AK assault rifles, six magazines and 105 rounds of ammunition were recovered from them, the spokesman said.

He said security forces also recovered two pistols, three magazines and 30 rounds during search operations at Nigil sahib forest in Poonch district on Friday.