The brief exchange of fire took place between militants and forces in the forest area of south Kashmir's Shopian district on Tuesday.
According to sources, there were no reports of any casualties on either side during the brief gunfight.
A police official said at around 2 pm, a joint column of 44RR, 23 PARA, SOG of Police and CRPF personnel laid siege around the Yarwan (Seer Khal) forests, around 15 kms from Shopian, after receiving information about presence of militants in the area.
"As the forces intensified searches, some militants hiding in the area opened fire on them," he said adding the fire was returned by the troops, triggering a brief gunfight.
The official said there were no immediate reports of any causality from the either side.
He said after the brief exchange of fire, militants managed to escape from the area.
More reinforcements were rushed to the area and the cordon was tightened.
The search operation in the area was underway at the time of filing of this report.
Some youth in Barthipora and Kral Check villages of the district took to roads and pelted stones on the police vehicles, which were on their way to the gun battle site.
The forces responded by firing tear smoke shells and pellets.