An exchange of fire took place between the security forces and terrorists in Baramulla district of Jammu and Kashmir early on Tuesday morning.
Following the firing, security forces have launched a search operation and cordoned off the area.
No casualties or injuries have been reported so far.
More details are awaited.
Earlier on Monday, three terrorists were gunned down after an infiltration bid was foiled by security forces in Jammu and Kashmir. The infiltration bid was foiled in Kupwara's Tangdhar sector on Sunday. A security personnel lost his life during the action.
On Sunday, a terrorist was killed in an encounter with security forces in Pulwama. He was identified as a top commander of Pakistani origin belonging to the banned terror outfit Jaish-e-Mohammed (JeM).
The slain terrorist was identified as Adnan - one of the top commanders of banned terror outfit JeM in the Kashmir Valley. He was of Pakistani origin.
Slain terrorist's body and a huge quantity of arms, ammunition and incriminating material were also recovered from the site of the encounter.
Security forces had launched a massive Cordon and Search Operation in Dar Ganie Gund village of Aribal area of Tral in south Kashmir district on Sunday morning, after receiving credible inputs about the presence of militants in the area, a J&K Police spokesperson said.
He said during the search operation, the hiding terrorist fired on the search party and the fire was retaliated, leading to an encounter.
Since the day three policemen were abducted and killed by terrorists in the state, security forces have been launching search operations to nab them.
Three cops were on Friday abducted and later killed by militants in Shopian district.