According to police, the gunfight broke out on Aug. 1 in a dense forest area of Akhal in Kulgam district, about 75 km south of Srinagar, the summer capital of Indian-controlled Kashmir, Xinhua reported.
Meanwhile, the operation in the area is underway.
Local media reports quoting official sources said two more soldiers were injured in the gun battle, taking the number of wounded soldiers to 10 since its beginning.
Police said the gunfight started after joint contingents of the army, police and paramilitary Central Reserve Police Force launched a joint operation on specific intelligence suggesting the presence of a large group of militants in Akhal area.
The Indian army said on Aug. 2 that a militant was killed in the operation.