Security forces, including the counter-insurgency Rashtriya Rifles (RR) and Special Operations Group (SOG), had launched the operation earlier on Saturday.
Three militants of the Pakistan-based Jaish-e-Mohammad (JeM) outfit were killed in an encounter with security forces in Tral area of south Kashmir's Pulwama district on Saturday.
Indian troops opened fire during a search operation in the Watyun area of Tral town.
The bodies of all three terrorists have been recovered along with weapons, a police official said, according to a PTI report. However, Khan said, preliminary investigations reveal that the slain militants belonged to the Jaish outfit and are foreigners. Sources said terrorists used a cave as their hideout but were later killed in the firing. "Special Task Forces and choppers have been deployed in the area to nab the hiding terrorists", he said.
The intelligence report further suggested that several suicide bombers are now reportedly planning to strike the Valley. The encounter comes few days after the terrorist attack on a bus carrying the Amarnath Yatra pilgrims that killed seven in Anantnag.