The encounter broke out in Paner forest in the periphery of Bandipora town, 55 kms from here, when a security search party confronted hiding militants.
They said two ultras and a jawan were killed in the gunbattle.
The identity and group affiliation of the slain militants could not be ascertained immediately as the operation was still on, the officials said.
Security forces had launched a massive search operation in the forests of Bandipora last week following information about movement of militants.
With the killing of two ultras today, the number of slain militants in the operation has risen to three.
Security forces also cordoned off nearby Dardpora forest in the wee hours to flush out militants.
Published 19 September 2010, 13:18 IST