An official told the reporters, "The militant started an open fire on the soldiers during a search operation in Shanker Gund Brath area of Sopore".
He said two militants were killed in the encounter.
On Sunday, the armed forces gunned down a Lashkar-e-Toiba (LeT) terrorist, involved in the killing of Lt Umar Fayaz in May, in Kulgam district of south Kashmir.
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The bodies of the slain militants were recovered along with two AK 47 with three magazines and one Insas with one magazine, the police said.
"Pervaiz Ahmad was involved in the serial blast on mobile towers in 2015 and was also involved in a series of civilian/ Police killings and various attacks on Police/Security forces".
For precautionary measure the administrations has ordered closure of all educational institutions in Baramulla and other major towns in the district today to prevent any law and order problem.
Wani was involved in serial blasts that targeted mobile towers in the area in 2015, the killing of two police personnel in Handwara market in 2013 and an attack on the Langate police post previous year, he said.