One terrorist has been killed in an ongoing encounter between terrorists and security forces at Mochwa area in Jammu and Kashmir's Budgam district on Saturday, officials said.

"One unidentified terrorist killed. One AK-47 rifle and one pistol recovered. Search going on," a police officer said.

Earlier, the firefight between terrorists and security forces took place after a joint team of the police and the army cordoned off the area and launched a search operation on the basis of specific information about presence of terrorists.

As the security forces zeroed in on the spot where terrorists were hiding they came under a heavy volume of fire that triggered the encounter.