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The encounter at K Kalan, Srigufwara area of the south Kashmir district began late on Saturday night.
It was the third encounter between security forces and militants in south Kashmir on Saturday. Two militants each were killed in the gunfights at Shopian and Pulwama earlier on Saturday.
A police official said security forces launched a cordon and search operation in K Kalan, Srigufwara area of Anantnag following inputs about the presence of militants there.
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In the ensuing gunfight, a militant was killed during the night, the official said.
Inspector General of Police, Kashmir, Vijay Kumar identified the slain terrorist as Faheem Bhat, resident of Kadipora Anantnag.
“He has recently joined #terror outfit ISJK and was involved in killing of Martyr ASI Mohd Ashraf, who was posted at PS Bijbehara,” the IGP Kashmir said in a tweet.
ASI Ashraf was shot dead by militants outside Bijbehara hospital on Wednesday evening.