An encounter broke out in the forest area of Dana Behak, Warnow area of Kupwara on Saturday.
Police and Army are on the job and further details are awaited, Kashmir Zone Police informed.
Earlier on Friday, three terrorists were eliminated in an encounter at Pattan in Baramulla district, police said.
Based on specific information regarding the presence of terrorists of proscribed terror outfit Jaish-e-Mohammad (JeM) in Buchoo/Kamla forests of Tral area of Awantipora, Police along with Army launched a search operation in the area.
During a search in the area, three hideouts of proscribed terror outfit JeM was busted and subsequently destroyed.
According to a press release issued by police, the joint team was able to recover incriminating materials including IED material from the hideouts. The incriminating material has been taken into Police custody for the purpose of investigation.