Acting on specific inputs by intelligence agencies, a combined team of army and police launched a cordon and search operation in Keshwan forest area, about 290 km from Jammu, during pre-dawn hours, they said.
During the search operation, militants fired on the security team, which also retaliated, the officials said, adding that a LeT militant later identified as Mohd Yusuf alias Abu Salim was killed.
The encounter was going on in the area when reports last came in.
In another encounter on Wednesday in Mohore area of Reasi district, two holed-up militants managed to escape from the cordon of army and police, the officials said.
The forces have launched a seek and destroy operation to track down the escaped militants, they added. On Tuesday night, one militant and an army personnel along with a civilian were killed in another gun battle in the area.
As many as 10 militants were killed in Mohore belt in four different encounters during the last fortnight.