An encounter broke out between terrorists and security forces in Jammu and Kashmir's Shopian district late evening on Tuesday. 

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A police official said the security forces had launched a cordon-and-search operation in the Melhora area of Shopian district, following information about the presence of militants there. 

The search operation turned into an encounter after the terrorists opened fire towards the security forces' positions.

The security forces retaliated, triggering a gunbattle that was still underway. 

Two to three militants were believed to be trapped inside the Melhora area of Zainapora in Shopian district which has been cordoned off. 

Soldiers from Army's 55 RR, Jammu and Kashmir Police personnel and CRPF jawans are engaged in the counter.