As soon as the security forces cordoned off Durbugh village following information about the presence of the militants holed-up in a house, they were fired at, triggering the fighting.
"Initial reports said one or two militants were hiding," the police added.
There are no reports of casualties as of now.
Sources revealed that terrorists have begun planning to target the tourists that will visit Jammu and Kashmir this year.
Earlier, Jammu and Kashmir Police on Monday arrested six persons after they busted a module of Hizbul Mujahideen militant outfit in Kulgam district of South Kashmir. A huge amount of arms and ammunition were recovered from the spot.
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