A terrorist was killed in a fresh gunfight with security forces on Wednesday near the site of an encounter in Jammu and Kashmir's Kulgam district where two ultras were killed a day earlier.

During search of houses near the encounter site in the Redwani area of the district, the fresh exchange of fire took place with a terrorist hiding there, officials said.

One terrorist was killed today, the officials said and added that the identity of the deceased was being ascertained.

They said firing was going on till last reports came in.

Two ultras, including wanted terrorist of Lashkar-e-Toiba Basit Dar, were killed in the encounter with security forces on Tuesday.

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