A police official, an army trooper and a top militant commander were killed in a fierce gunfight at Dadsara village near the south Kashmir's Tral town in Pulwama district, 30 km from Srinagar.

A senior police officer said troops of 42 Rashtriya Rifles and the local police jointly surrounded a house in Dadsara village on Tuesday afternoon after they received a tip off that a group of Hizbul Mujaheedin militants were holed up there.

"As the security forces challenged the militants to surrender they opened fire triggering a gunfight. In the initial firing, one sub-inspector and an army jawan were killed. More reinforcements were rushed to the area as the gunbattle intensified," he said.

The officer confirmed Sajad Ahmad, divisional commander of the Hizbul Mujaheedin outfit had also been killed and his body recovered from the encounter site. He said Sajad was involved in the recent killing of the ruling National Conference block president Ghulam Mohi-ud-Din Bhat in Tral town.

The area continues to be under tight cordon as the militants, believed to be two to three in number, are suspected to have taken refuge in some nearby houses.