After learning of the terrorist presence there, security forces launched a cordon and search operation in the village of Tulibal in the Sopore district of Baramura, a police spokesman said.
He said the search turned into an encounter after terrorists fired on security forces and retaliated.
He added that an unidentified terrorist was killed in the encounter, which was ongoing when it was last reported.
Two terrorists were killed in another encounter that erupted in Tujjan in Pulwama, southern Kashmir, the spokesman said.
He said Nazir was involved in the killing of Deputy Inspector Farouk Ahmed Mir a few days ago.
(Apart from the title, this story was unedited by NDTV staff and was posted from a syndicated feed.)