Superintendent of police, Imtiyaz Hussain, said they had information that the militants were travelling toward the city of Srinagar.
"We intercepted their (the militants') vehicle near Sopore on the main highway. They lobbed grenades at the forces and were killed in retaliatory fire," Hussain told AFP.
Two police officers, including member of a special anti-militancy group, were injured, Hussain said.
India trying to divert world's attention from Kashmir atrocities: COAS
Kashmir has been divided between India and Pakistan since they won independence from Britain in 1947. Both claim the Himalayan territory in its entirety.
Several rebel groups have for decades fought the 500,000 Indian troops deployed in the region, demanding independence or a merger of the territory with Pakistan.
The fighting has left tens of thousands, mostly civilians, dead.
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