Police sources said that the joint teams of police, army and paramilitary forces, laid down the cordon this morning in Thannamandi area after a group of terrorists opened fire and the encounter triggered.
"Two terrorists are eliminated in the ongoing operation," said police sources.
"As the search teams approached towards the suspected spot, the hiding terrorists fired upon them thus triggering the gunfight," police added.
However, Jammu Zone Police also confirmed the gun battle through a tweet that contact was established with militants in Thannamandi area of Rajouri district.
"Exchange of firing is going on between security forces and the terrorists," police added.