The army said that the sanitisation process was underway in the Samba sector.
Fresh rounds of gunfire was reported on Thursday afternoon between security forces and the terrorists, who were holed up in the Army camp in Samba.
The gunfire began again after there was a caml for a long time.
The attacks in Jammu and Kashmir on Thursday morning, claimed the lives of 12 people including five Army personnel and one Lt Colonel.
Lashkar's shadow outfit, AL-Shohda claimed responsibility for the Jammu attacks. The terrorists were holed up in the army camp as the forces drew a close to the encounter.
Reports suggest that Pakistan backed the terrorists active in J&K in an infiltration bid.
Reports suggest that heavy firing was exchanged between army personnel and terrorists, who were dressed in army uniforms in the Samba Sector. The other attack took place in Hiranagar police station, that claimed six lives.
Home Minister Sushil Kumar Shinde condemned the attack and said: "We will carefully examine the situation," even as he was being briefed by the intelligence bureau, which is underway.
The attack has been condemned by the Congress and the BJP, with the latter discouraging the PM to hold talks with Nawaz Sharif. "Can't talk to Pakistan now," said BJP spokesperson Mukhtar Abbas Naqvi. Senior BJP leader Yashwant Sinha too said that the PM should call off the talks. "We should send a clear message to Pakistan," he said.
Lashkar shadow outfit Al-Shohad claims responsibility for the attacks
The encounter was underway but gun shots were not heard for a long time. The terrorists, after attacking the police station fled in an army truck and then struck am army camp at the Samba district. Security forces have cordoned off the area aournd the Samba town.
The attack has now cast dark clouds of doubt on the Manmohan Singh and Nawaz Sharif meeting, which is scheduled to take place on September 27.