A fierce gunfight is underway between the militants and state government forces in Kandi Aglar area of district Pulwama.
"He has succumbed to his injuries", said a police official. Three suspected JeM terrorists were also killed in the encounter, and two AK-47 rifles and a pistol recovered, said defence spokesperson Colonel Rajesh Kalia.
He said the search operation led to a gunbattle after the militants fired towards the security forces' positions.
According to local sources, the intermittent exchange of firing was going on between the militants, who are hiding inside a residential house, and the government forces.
The security forces also gunned down three terrorists in the operation.
On November 2, two army troopers and a militant were killed in an encounter in Pampore area of the same district.
The Internet services in Pulwama have been withdrawn in view of growing tensions, a report said.