The gunbattle took place when army confronted a group of heavily-armed militants at Gulab Post, 130 kms from here, when they were attempting to sneak into the valley from across the border, Senior Superintendent of Police, Kupwara, Uttam Chand said.
He said a massive search operation was launched in the area falling under Hatmullah three days back following information about possible attempt by militants to sneak into the valley.
As the search operation was in progress, militants opened heavy fire in an abortive attempt to escape and in the ensuing gunbattle, three militants and two army personnel including a major were killed, the Kupwara police chief said.
The name of the major was not yet known.
He said the search operation was still in progress and further details of the encounter are awaited.