Security forces launched a cordon and search operation in the Banderpora-Rinzipora area of Awantipora on Friday morning following information about the presence of militants there, a police official said.
He said the search operation turned into an encounter after the militants fired on the search party of the forces, who retaliated.
In the ensuing gunfight, one militant was killed, the official said.
He sad the slain militant has been identified as Ishfaq Yousuf Wani, a resident of Qoil area of Pulwama in south Kashmir.
Further details are awaited, the official said.