According to police spokesman, the slain LeT militant was from Pakistan and his identity was yet to be established.
The spokesman said, security forces launched a cordon and search operation in Nadola area of Poonch district.
Some militants, who were hiding there, fired at the army personnel, forcing them to retaliate. In the exchange of fire, one militant was shot dead, the spokesman said.
"Two to three militants are still trapped at the site of encounter which is still on", he said adding "one AK rifle, three AK magazines, one radio set and a mobile were also recovered."