Prime Minister Manmohan Singh's rally in Srinagar's Sher-e-Kashmir cricket stadium has been rescheduled to 3pm following a fidayeen attack near the venue.

Two militants had taken up positions in a semi-gutted cafetaria on the Shankaracharya mountains overlooking the stadium. Security forces killed both of them after a lengthy gun battle.

Three people -- two jawans and a civilian -- were also injured.

The PM reached Srinagar at around 10am and went straight to the Hazratbal shrine, which houses Prophet Mohammed's relic.

He will now attend the convocation ceremony at Sher-e-Kashmir Institute of Medical Sciences. In the evening he will address a press conference before heading for Jammu tomorrow morning.

When Singh addresses the rally, he will become the first Congress PM to do so in Kashmir in 17 years.

Former PM Atal Bihari Vajpayee had addressed a public meeting at the same venue in April 2002.

Meanwhile, reports say that the All Party Hurriyat Conference factions may unite to increase their bargaining power in the proposed third round of talks with the Centre.

According to sources, the Hurriyat is taking the talks with the Centre very seriously.

Hurriyat chairman Mirwaiz Omar Farooq says he he is looking forward to Singh's visit.

The sources say that the Syed Ali Geelani faction is likely to merge with its Mirwaiz counterpart.