Two militants of Lashkar-e-Taiba are believed trapped in an encounter with security forces at the house of a separatist leader in Sopore, 55 km from here, in northern Kashmir.
Sources said that the Army launched the cordon-and-search operation on Sunday evening after learning from a tip off about the presence of two LeT militants.
Pakistani militant Mehmood Bhai and a local LeT operative Imtiyaz Kondu were reportedly hiding in the residence of a separatist leader Abdul Gani Guru at Krankshivan Colony.
Officials said that the final assault would be launched to neutralise the militants on Monday morning if they failed to surrender.