Earlier, the Kashmir Zone Police had said that efforts were being made to get two militants hiding inside a mosque in Shopian after an overnight encounter to surrender.
The encounter between security forces and terrorists started in Shopian on Thursday where terrorists are holed up inside a mosque.
The victim was identified as Shams-ud-din Pir, according to the police. With this the number of persons killed in Monday's attack has gone up to three.
India and Pakistan signed a ceasefire agreement in 2003, but it has hardly been followed in letter and spirit over the past several years.
According to the official, two jawans sustained injuries during the operation and they have been hospitalised for treatment
The encounter took place in the Kreeri area after the security forces cordoned off the area and launched a search operation on the basis of specific information about the presence of terrorists.
The security forces have seized one AK rifle and two pistols from the encounter site.
Security forces launched a cordon and search operation in the Tikken area of Pulwama district in the early hours of the day on receiving information about the presence of terrorists.
The area has been cordoned off to nab the terrorists and both the injured were shifted to hospital.
The attack came on the 12th anniversary of Mumbai terror attacks and ahead of the District Development Council (DDC) elections in the Union territory.
The prime minister also suggested a single voters' list for Lok Sabha, assembly and panchayat polls, saying separate lists are a waste of resources.
Government sources said NSA Ajit Doval, foreign secretary and top intelligence officials attended the meeting in which Modi took stock of the situation.
The militants made an abortive bid during the night to infiltrate into the Indian side of the LoC in Machil sector in north Kashmir's Kupwara district.
The IT training will be imparted to them at the proposed National Centre for Divyang Empowerment (NCDE) at the CRPF Group Centre in Ranga Reddy district
A top police officer said that two terrorists' bodies are visible and expressed possibility that there could be one more as searches are still underway.