Security forces launched a cordon-and-search operation in the Hanjipora area of Shopian district following information about presence of militants there, a police official said.
He said the search operation turned into an encounter after militants opened fire on the security forces personnel, drawing retaliation.
In the ensuing gunfight, a militant was killed, the official said.
He said the identity and group affiliation of the slain militant were yet to be ascertained.
The operation was underway till last reports came in, the official added.