Earlier, one CRPF jawan lost his life while two others were injured when terrorists attacked their vehicle in Srinagar. (Representative image) Photograph: (Zee News Network)
Security forces shot dead two terrorists after an encounter at the Delhi Public School in Srinagar's Pantha Chowk on Sunday.
Two Indian Army personnel were also injured in the gunbattle and have been taken to a hospital, an official said.
The militants had entered the premises of DPS Srinagar last evening after carrying out an attack on the CRPF personnel deployed on road opening duty near the school on Srinagar-Jammu national highway.
One CRPF officer was killed and a constable of the force injured in the attack that took place in the high-security zone located less than a kilometre away from headquarters of Army's Chinar Corps.
Indian soldiers surrounded the school on Saturday evening as the militants continued firing on troops surrounding the campus, said Muneer Ahmed Khan, inspector general of police in Kashmir.
"The operation is continuing. We are... searching floor by floor, and room by room. It will take time," he earlier told AFP.
"The exchange of firing between security forces and militants began at around 3.40 am and is going on intermittently, " a police official said.
Restrictions under Section 144 have been imposed in the area, Srinagar's Deputy Commissioner Farooq Ahmad said.