Two militants were killed on Wednesday in a fierce gunfight with troops in restive Indian-controlled Kashmir, police said.

The gunfight broke out in Nowgam area of Srinagar city, the summer capital of Indian-controlled Kashmir.

"In a gunfight that broke out here today at Sothu Kothair of Nowgam here, two militants were killed," Indian army spokesman in Srinagar Col Rajesh Kalia told Xinhua.

Police said the area was cordoned off early Wednesday following specific intelligence information suggesting presence of militants.

Local media reports quoting senior police official VK Birdi said six government forces personnel were wounded fighting the militants during the stand-off.

The slain militants were identified as local cadres of Lashkar-e-Toiba (LeT) hailing from southern Anantnag district, reports said.

Meanwhile, massive clashes broke out in the area with youth taking to the streets to disrupt the operation in a bid to help militants escape.

The local administration has ordered closure of all schools and educational institutions in Srinagar.

Mobile internet services were suspended in Srinagar and southern districts fearing it would help intensify anti-India protests.

On Sunday three militants were gunned down in a similar gunfight in Kulgam district, and later seven civilians were killed after a blast went off near the gunfight site.

A guerilla war is going on between militants and Indian troopers stationed in the region since 1989.