The gun battle between the security forces and the terrorists took place in Hajin, Defence Ministry spokesman Colonel Rajesh Kalia said.
Police sources said at least one more soldier was also injured in the encounter in Paribal village.
The gun battle erupted as the security forces surrounded the village early on Wednesday following specific inputs about the militants’ presence inside a house.
The hiding militants triggered the encounter as they fired at the security forces approaching the house. Two militants were immediately killed.
“Three soldiers sustained injuries, two of whom were critical and later succumbed,” the police sources said.