An encounter broke out between security forces and terrorists in the upper reaches of Basantgarh in Udhampur district of  Jammu and Kashmir on Wednesday, officials said.

The gunfight took place when troops of the first para of the Army along with police moved to Khandara top following information about the presence of a group of terrorists, they said.

The hiding terrorists opened fire on the search parties around 12.50 pm, prompting retaliation by the security forces.

Reinforcements have been rushed to the forest area to neutralise the terrorists, the officials said.