Three Jaish-e-Mohammad (JeM) terrorists were killed in an overnight encounter with security forces in Budgam district of Jammu and Kashmir, police said on Friday.

The encounter broke out in Budgam's Zolwa village late on Thursday, a police official said.

Three terrorists were killed in the exchange of fire with the security forces, the official said.

"All three slain terrorists were affiliated with JeM terror outfit. Three AK 56 rifles and other incriminating material were recovered from the site of the encounter," said Inspector General of Police, Kashmir, Vijay Kumar.

While one of the terrorists has been identified as Waseem from Srinagar, the identities of the other two are being ascertained, he said.

The security forces have eliminated 16 terrorists in the first week of this year.