A fierce gunfight between militants and Indian troops Tuesday broke out in restive Indian-controlled Kashmir, police said.

The gunfight erupted at village Kachwan of Anantnag district, about 85 km south of Srinagar city, the summer capital of Indian-controlled Kashmir.

"Today a gunfight started between militants and joint contingents of police, paramilitary and army inside forest area of Kachwan-Kokernag here," a senior police official posted in Anantnag told Xinhua. "Two to three militants are believed to be trapped in the area."

Officials said the village was cordoned off following specific intelligence information suggesting the presence of militants.

"Exchange of fire in underway from both the sides and further details are awaited," the police official said.

Last week a top militant commander and head of al-Qaida affiliate Ansar Gazwatul Hind, Zakir Musa, was killed in a gunfight in the region.