Two suspected militants were killed and three para commandos were injured in an encounter on Sunday afternoon at Pantha Chowk, on the outskirts of Srinagar.
However, the identity of the two slain terrorists is still to be officially declared, further said the official.
"The exact number will be known after the search of the building is over, but as per the information, there are two probably, he said".
Encounter between security forces and terrorists holed up in Srinagar's DPS school is underway. One Sub Inspector and two jawans died in the attack in the high security zone located less than a kilometre from headquarters of Army's Chinar Corps. A civilian has also been injured.
The injured were admitted to the army's 92 base hospital in Srinagar. However, there is no official confirmation if the militants managed to enter the complex.
"The exchange of firing between security forces and militants began at around 3.40 am and is going on intermittently, " the police said.
The administrative block of the school building suffered extensive damage during the gunfight.
On Saturday a CRPF officer was killed and two other troopers injured in the ambush claimed by Lashkar-e-Toiba militant outfit.
District Magistrate of Srinagar, Farooq Ahmad Lone on Saturday imposed restrictions on the stretch of Srinagar-Jammu national highway between Ram Munshibagh and Sempora.
CRPF spokesperson Rajesh Yadav told Kashmir Reader that soon after the attack, the entire area was cordoned off to nab the militants.
Mobile internet services were suspended in the Valley to prevent the spread of rumours.
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