"Acting on a tip-off, a team of security officers last night laid a cordon at Tota Morha-Dorimal village in Thanna Mandi," said Shafkat Wattali, Rajouri SSP.
"The militants fired a volley of shots killing two police personnel on the spot," he added.
A brief encounter followed which was later suspended due to dark. The operation resumed this morning, he said.
The deceased have been identified as Aijaz Ahmed, a constable hailing from Baramulla and Khan Mohammad, a SPO from Kalakote.