Army and police had launched a joint operation in Bowan village of Nowgam sector, 100 km from Sringar, on Thursday evening following information about the presence of ultras in the area.
"Two militants have been killed in the operation in Nowgam sector of Handwara," defence sources said. They said a jawan of the special operations group of the police was injured in the operation, which was going on till last reports came in.
The identity and group affiliation of the deceased militants was not known yet, the sources said.
Security forces have intensified anti-insurgency operations along the Line of Control in Kupwara district since last week.
Three militants were killed in a gunbattle with the army and police in Bangus valley of Kupwara on Thursday.
The sources said the operation against the militants in the area is still going on. An Army jawan and a policeman were also injured in the exchange of firing with the ultras in the area.
One unidentified militant was killed in an encounter with security forces in Handwara area on June 29.