Both were killed in Khonmoh area on the outskirts of Srinagar city. They had planned to disrupt the Republic Day functions being held here, the sources said

Two AK-47 rifles and ammunition were recovered from their possession. The slain militants' names were not given out.

A search operation was going on in the area.

The Rashtriya Rifles, the Special Operations Group (SOG) of the Jammu and Kashmir Police and the Central Reserve Police Force (CRPF) earlier surrounded Khonmoh area following information about the presence of militants.

"As the cordon was tightened, the militants fired, triggering the encounter," a police officer said.

Security was heightened in the city as various official functions have been planned in connection with the Republic Day celebrations.