A senior police official told rediff.com that the gunmen shot at Aijaz Ahmad Reshi from close range near his house in the Mundji Sopore area. Reshi succumbed to bullet wounds before he could be taken to the hospital.
This is the second such killing of an ex-terrorist in as many days.
No group has claimed responsibility for the killings yet.
Meanwhile, senior police officials have reached the area with reinforcements. Search operations are underway, sources said.