A terrorist was killed and two Army soldiers were injured in an encounter in Kupwara district of Kashmir on Friday.

The gun battle broke out between terrorists and security forces in Wuder Bala area of Handwara, 95 km from Srinagar, in the wee hours after Army launched a search operation in the area, Defence Spokesman Lt Colonel J S Brar said.

"An unidentified terrorist has been killed," the spokesman said.

He said two soldiers sustained minor injuries during the operation, which was still in progress.