The blast took place around midnight (1900 GMT) and triggered fire in Gulpar camp in Kotli district near the UN monitored line of control that divides the disputed Himalayan region between India and Pakistan, local police chief Malik Khalid told AFP by telephone.
"One body has been recovered and five soldiers injured in the incident have been admitted to hospital," he said.
Local administration chief Fareed Ahmed confirmed the incident. "We are investigating if the explosion was accidentally caused by an electrical short circuit or if it was an act of terrorism," he said.
Overall militant violence in the region has declined since India and Pakistan began a peace process in 2004. Since then, there have been sporadic small clashes with both sides accusing the other of violating the ceasefire.
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