Two Lashkar-e-Taiba (LeT) militants were killed in an encounter with security forces in Budgam district of Jammu and Kashmir on Wednesday, police said.

Police earlier said three LeT terrorists, including Lateef Rather involved in the killing of Kashmiri pandit government employee Rahul Bhat in May, were trapped at the encounter site.

"Two terrorists have been killed so far. The operation is still in progress," a police official said.

Giving details, a police spokesman said security forces launched a cordon and search operation at Waterhail in the Khansahib area of the district following information about the presence of militants there.

He said the hiding militants fired at the security forces, leading to a gunfight.

Additional Director General of Police (ADGP), Kashmir Zone, Vijay Kumar said three Lashkar men, including most wanted Lateef Rather, were trapped in the encounter.

"03 #terrorists of #terror outfit LeT(TRF) including terrorist Lateef Rather trapped in ongoing #encounter. Terrorist Lateef is involved in several #civilian #killings including Rahul Bhat & Amreen Bhat," Kumar tweeted.

Rahul Bhat, who had got the job of a clerk under the special employment package for migrants in 2010-11, was gunned down by terrorists inside the Tehsil office in Chadoora town in Budgam on May 12.

Days later, TV artist Amreen Bhat was shot dead by LeT terrorists inside her house in Chadoora.