Srinagar: Two terrorists were believed to have been killed in an encounter with security forces in Tral area of South Kashmir's Pulwama district on Saturday, police said.

A senior police officer said the bodies of the terrorists were yet to be recovered and that the exchange of fire continued.

The encounter began after terrorists opened fire on security forces who were carrying out a search operation in Satoora forest area of Tral, 36 kms from Srinagar.

The police officer said the search operation was launched on information about the presence of some militants there.

Security forces have killed 102 terrorists till now this year, making it the highest number of killings in the January-July period in seven years, a police official said on Friday.

The killing of 102 terrorists till July 12 makes it the highest number in the past seven years, the official said.

Earlier in 2010, the highest number of 156 militants were killed between January and July that year.

The security forces also have prepared a hit-list of several other terrorists belonging to Lashkar-e-Taiba, Jaish-e-Mohammad and Hizbul Mujahideen.