At around 4 AM, when the security forces were conducting search operations, the militant opened fire and he was killed in the exchange of fire, the sources said.
The militant was operating with the code names Shoaib and Yasir and was active in Sopore area from 2007, they said, adding he had come to Kashmir in 2002.
He was involved in many field killings and attacks on mainstream politicians, the sources said, describing hiskilling as a "great achievement".
A sub-inspector identified as Dilraj was also injured in the encounter.