Security forces were engaged in an exchange of fire with militants in Hadipora area of south Kashmir's Shopian districts. One militant was killed on Saturday.
Earlier, the Kashmir Zone Police had said that efforts were being made to get two militants hiding inside a mosque in Shopian after an overnight encounter to surrender.
According to the police, a 9mm pistol was recovered from the Naxal's possession. The encounter two jawans of the 16th battalion of Chhattisgarh Armed Force (CAF) have been injured in an IED (Improvised explosive device) blast
The encounter took place in the Kreeri area after the security forces cordoned off the area and launched a search operation on the basis of specific information about the presence of terrorists.
The incident took place in Gajalmamudi area of Swabhiman Anchal during an exchange of fire between the Maoists and the Special Operations Group (SOG), said DGP Abhay.
The militants made an abortive bid during the night to infiltrate into the Indian side of the LoC in Machil sector in north Kashmir's Kupwara district.
Acting on specific information about the presence of militants in Rangreth near the old airfield here, the security forces launched a cordon and search operation in the area, a police official said.
Tripathi disclosed that home secretary level talks involving both the states will be held at Lailapur Beat Office on Wednesday morning to resolve the matter amicably.