The gunfight erupted after police, assisted by Army, launched a combing operation in the Hamla forest, 90 kms from here, on getting specific information about presence of a group of militants, Superintendent of Police, Handwara, Choudhary Mohammad Aslam said.
He said two hiding militants were confronted by the search parties late last night and asked to surrender.
However, the militants opened fire and tried to escape, he said, adding, both the militants were killed today and were later identified as 'Divisional Commander' Abu Jabran of LeT and his close associate, both Pakistani nationals.
A huge cache of arms and ammunition was recovered from the slain militants, Aslam said.
Jabran was one of the most wanted militants in north Kashmir and was active for the last several years, he said terming the killing as a "major breakthrough".
Security forces intensified operations in Rajwar belt of Handwara after suspected militants shot dead a father-son duo inside their house in May.
Meanwhile, in another operation, security forces busted a militant hideout in Kanthabagh area of Baramulla district last night and recovered a huge cache of arms and ammunition, they said.
The recoveries included an Under Barrel Grenade Launcher (UBGL), three UBGL grenades, one pistol, three magazines, 33 pistol rounds,eight AK magazines, 344 AK rounds, one wireless set and three hand grenades.
