Security forces launched a cordon and search operation in Redwani area of Kulgam district late on Wednesday night, a police spokesman said.
He said the search operation turned into an encounter after militants fired upon the forces, who retaliated
Two ultras were killed in the exchange of firing in the early hours of Thursday, the spokesman said, adding the operation was going on till last reports.
The identity and group affiliation of the slain militant was being ascertained, he said.