However, three more are believed to be hidden, said reports.
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 militants opened fire on security forces who were carrying out a search operation in Satoora forest area of Tral, 36 km from here.
The police officer said the search operation was launched on information about the presence of some militants there.
This year, till now, 1oo terrorists were killed, said Army.