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

The gunfight erupted at village Keeri of Baramulla district, about 45 km northwest of Srinagar city, the summer capital of Indian-controlled Kashmir.

"A gunfight started this morning between militants and joint contingents of police and army here at a village," a senior police official said. "Two militants are believed to be trapped in the area."

Authorities have suspended mobile Internet service in the district and closed roads leading to the site.

"The exchange of fire is going on and we are awaiting details," the official said.

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

On Wednesday, two militants were killed in a similar gunfight in Srinagar.

Meanwhile, life in Muslim majority areas of the region Thursday remained paralyzed in response to a shutdown call against Wednesday's militant killings.

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