In the ensuing encounter, two terrorists were killed and their bodies were retrieved from the site.
Huge cache of arms and ammunition were recovered from the site of encounter.
Two encounters are underway in Kashmir between the terrorists and security forces at Tujjan area of South Kashmir's Pulwama district and at Sopore in North Kashmir's Baramulla district on Tuesday.
The police added that during the initial exchange of fire, one terrorist was killed and the arrested terrorist leading search party also got trapped.
Inspector General of Police Vijay Kumar said the killed terrorist has been identified as a Pakistani, linked with the proscribed LeT terror outfit.
There have been a series of encounters between the terrorists and security forces in Kashmir over the last few months in which many terrorists and their commanders have been eliminated.
Inspector General of Police, Kashmir zone, Vijay Kumar said one of the slain militants was identified as Jan Mohammad Lone, who was allegedly involved in the killing of a bank manager in Kulgam district recently.
In the initial exchange of fire, five police personnel received minor injuries and were immediately evacuated to hospital for the treatment of their injuries.
There have been a series of anti-terror operations in Kashmir over the last few months in which many terrorists and their commanders have been eliminated.
Two terrorists of proscribed terror outfit LeT including one Pakistani terrorist namely Tufail killed.
As per the documents recovered from the killed Pakistani terrorist, he has been identified as Hanzalla of Lahore, Pakistan.
The encounter that started on Monday based on an intelligence input ended with the killing of two terrorists on Tuesday.
It said the search of the area yielded dead bodies of three terrorists, three AK rifles, one pistol, six grenades and large quantity of ammunition and stores related to (IEDs) Improvised Explosive Devices.
Three terrorists were killed in an encounter with the security forces at Jumagund village in North Kashmir's Kupwara district on Thursday.
Rahul Bhat's murder has reportedly been avenged. All the three terrorists suspected in killing has been eliminated in Jammu and Kashmir.