An encounter broke out between security forces and terrorists in Rambagh area of Srinagar in Jammu and Kashmir on Monday, police said.
Police and Central Reserve Police Force (CRPF) are on the job, Kashmir Zone Police said.
Security forces suspect that one is a foreign terrorist while another is a local, CRPF sources said.
Officials said security forces launched a cordon and search operation in Old Barzulla area of the city here in the early hours of Monday after receiving specific inputs about the presence of terrorists in the area.
Around 7:45 AM, when searches were underway, they opened on the forces. The forces retaliated and an encounter ensued, an official said.
After the initial contact, there was a lull for half an hour and then the firing resumed, he added.