"Two more CRPF (Central Reserve Police Force) soldiers died" in pursuit of the attackers, Vaid told AFP.
The incident took place at around 4:30 am when the militants opened fire on District Police Lines (DPL), Pulwama.
Jaish-e-Muhammad (JeM) has claimed the responsibility for carrying out the attack.
Three militants were said to be involved in the attack and had been localized into two blocks.
Anti-India rebels in Kashmir stormed a police camp in the disputed region Saturday, killing two paramilitary soldiers and a police officer, an official said.
Security forces have rushed in reinforcements to neutralize the holed up militants.
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A police spokesperson too said all families were evacuated from the quarters and there was "no hostage situation".
The militants launched the attack on a guard-post upon entering Pulwama town's district police lines at around 3.40 a.m, the police said.
At least six security personnel are believed injured in the ongoing encounter.
Reports from Pulwama also said that loud explosions were heard amid exchange of gun fire. "Heavy firing is going on between the two sides".
The encounter is still underway. Reports said that militants fired a rifle grenade at an army casper in Hygam village of Sopore, 45 km from here.
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