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The militants belonged to Jaish-e-Mohammad (JeM) outfit.
Security forces launched a cordon and search operation in Chinkipora near Arampora area of Sopore township in the north Kashmir district this morning after receiving intelligence input about the presence of militants in the area.
The search operation turned into an encounter after the hiding militants fired upon the forces.
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He said in the ensuing gunfight, two militants were killed.
Some arms, ammunition and incriminating material were recovered from the site of the encounter, the spokesman said.
From the incriminating material recovered from the encounter site, the killed terrorists have been identified as foreigners from Pakistan namely Ali alias Athar and Zia-ur-Rehman. They were affiliated with proscribed terror outfit JeM, he said.
The spokesman said Ali was one of the important commanders of JeM and was active since 2014.
He was the mastermind of the January 6 Sopore IED blast in which four policemen attained martyrdom. Besides, both of them were involved in attacks on security force establishments and civilian atrocities, he said.
Police have registered a case in this regard and the investigation has been initiated, the spokesman said.