The area around the house where militants are hiding has been cordoned off and efforts are on to eliminate the militants.
The gun battle reported a day after four terrorists and soldier were killed as Army foiled an infiltration bid in Tangdhar sector near the Line of Control in Kashmir on Thursday.
This was second infiltration bid foiled by the security forces along the LoC in Kashmir. On Tuesday, an infiltration bid was foiled in Machhil sector of Kupwara district.
The two-day operation left one militant dead while one soldier laid down his life. Four other jawans were also injured in the operation.