All three militants holed up in a house in Shopian were believed to be killed after an overnight encounter with security forces, in which a Major and an army jawan lost their lives.
"The gunfire stopped at 0915 hrs this morning. We believe all the militants have been killed," a senior police official said.
He said at least two militants were believed to have been killed yesterday itself but the exact situation will be revealed once they retrieve the bodies.
He said a militant opened fire on the security forces in the wee hours today and they retaliated. The exchange of fire lasted nearly three hours.
Security forces launched a search operation in Karewa Malino in Shopian, 55 kms from here, last evening following information about presence of three militants -- two locals and a foreigner.
The militants were asked to surrender but they resorted to firing, triggering the gunfight.
An army major and a soldier were killed in the operation against the militants yesterday while another soldier was injured.
He said the security forces will first remove the body of the slain army soldier, which was lying close to the house.
"Search of the debris will be conducted afterwards and the total number of militants killed can be confirmed only after the sifting operation is complete," he added.
Shopian is part of the Anantnag Parliamentary constituency and the encounter took place a day after militants carried out an attack on a polling party escorted by police and CRPF in the district at the end of the voting on Thursday.
One polling officer was killed while five others including three security personnel were injured in the incident.