The sources said the infiltrators were challenged by the army and asked to surrender. However, the militants opened fire towards the army positions, which was retaliated.
In the ensuing gunbattle, an unidentified militant was killed while his accomplice fled back across the LoC, they said.
Search operations in the area are still in progress, the sources said.
This is the second infiltration bid by militants this month. Five militants were killed when Army foiled an infiltration bid in Keran sector on July 9.