Two Hizbul Mujahideen (HM) terrorist were killed in an encounter with security forces in Jammu and Kashmir's Anantnag in the early hours of Tuesday, sources said.
The search operation led to a gunbattle after the terrorists fired towards the security forces' positions.
"Security forces launched a cordon-and-search operation in the area following information about the presence of some terrorists", a police official said.
"The exchange of fire between the two sides is going on and five more terrorists are believed to be trapped" he added.
Earlier this week, five paramilitary personnel and two militants were killed in a gunfight triggered by the fidayeen attack by suspected Jaish-e-Mohammad militants on Central Reserve Police Force's (CRPF) training centre in south Kashmir's Pulwama district.