A senior police officer said that a joint team of army, SOG and CRPF launched a cordon-and-search operation at Khar Mohalla in Magam today morning.
Since the operation took place in forest area, para commandos were also pressed into action.
When the troops were closing in on the target, they came under a heavy fire from the hiding militants.
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In another operation in the neighbouring Kupwara area, a special forces soldier was killed in a continuing gun battle, police said. "Three Pakistani LeT militants were killed, and arms and ammunition recovered".
Khan said government forces were battling a few militants trapped in the area.
State DGP S P Vaid hailed the security force for their "excellent work" in counterpoising the three terrorists.
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He said an army man and a militant were killed and two army personnel injured in the gunfight.
A soldier was martyred on Tuesday in two gunfights in Jammu and Kashmir's Kupwara district.
According to officials, the joint operation of the Indian Army and Jammu and Kashmir Police started late on Monday night.
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