"All the three militants have been killed and the operation is over," Srinagar-based Defence spokesman Lt Colonel J S Brar said, adding further details of the incident were awaited.
The encounter broke out last evening when troops of 52 Rashtriya Rifles and police launched an operation in Seer area of Sopore, 55 kms from here, official sources said.
The militants were holed up in an under-construction house adjacent to the Law College in the township.
Reinforcements were rushed to the village to neutralise the militants. The operation was suspended for the night but the cordon was continued, they said.
The security forces launched the final attack on the militants soon after day break and the encounter ended at around 0600 HRS, the sources said.
The slain militants have been identified as Pakistani national Abdullah Babu, Saiful Ghazzali and Ghulam Nabi Dar -all affiliated with LeT, they said.
Three AK rifles, six magazines and three RPG boosters have so far been recovered from the scene of the gunbattle that lasted nearly 12 hours, officials said.