Two terrorists who launched a pre-dawn suicide attack on an army camp in Jammu and Kashmir's Rajouri were shot dead and three soldiers were killed in the heavy exchange of fire with troops.

Two soldiers were also injured in the attack.

The terrorists resorted to heavy firing after they barged into the army camp at Pargal area in Rajouri district, following which the army retaliated.

The army said both the terrorists were killed.

"Someone (terrorists) tried to cross the fence of Army camp at Pargal. Sentry challenged and exchange of fire took place," Additional Director General of Police (ADGP) Mukesh Singh said.

Police said the Lashkar-e-Toiba terror group is behind the attack.

The attack comes a day after three LeT terrorists were neutralised by security forces in Budgam. One of the killed terrorists was involved in the killing of civilians Rahul Bhat and Amreen Bhat.

Recently, police busted a major Lashkar module in the area after the arrest of Talib Hussain Shah.

Shah, according to police, was involved in series of attacks in the area and large cache of arms and ammunition was recovered from him.

The attack on the army camp also comes just a day after police averted a major tragedy by recovering 25 kg improvised explosive device (IED) in Pulwama district of the union territory.