Security forces had launched a cordon and search operation at Khagund in Anantnag district''s Verinag area following information about the presence of militants there, an official said.
The search operation turned into an encounter after militants opened fire on the security forces, who retaliated, he said.
The police official said that while one militant has been killed, a policeman suffered injuries.
He added that the operation is going on.
In another encounter, which broke out at Gundjahangir in Bandipora district’s Hajin area, a Lashkar-e-Toiba militant was killed.
"Killed terrorist has been identified as Imtiyaz Ahmad Dar affiliated with proscribed terror outfit LeT (TRF). He was involved in recent civilian killing at Shahgund Bandipora," Inspector General of Police, Kashmir, Vijay Kumar tweeted.