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Security forces launched a cordon and search operation in Qazigund of Anantnag district after receiving information about the presence of militants in the area, an army official said.
Internet service in Anantnag and Kulgam districts were suspended and restrictions imposed in some sensitive areas to prevent any demonstration.
The militant's body was recovered from the gunfight area in Gandole village of Kokernag area.
Militants hurled a grenade on security forces deployed in Anantnag town in the south Kashmir district, resulting in injuries to one CRPF jawan and a special police officer.
Acting on a tip-off , troops of Rashtriya Rifles (RR), Special Operation Group (SOG) of Jammu and Kashmir police and CRPF launcnched a joint search operation this morning.
The militants attacked the security forces by opening fire upon them at the Bamzoo area of Mattan in south Kashmir district, a police official said.
Two CRPF men were killed and one injured in an attack by Lashkar-e-Toiba militants in Achabal area of south Kashmir's Anantnag district on Friday.
Internet services were suspended as a precautionary measure to maintain law and order following an encounter in Anantnag district in which four militants were killed.
A state police constable and a civilian were also killed and several others injured in the encounter and subsequent demonstrations in the valley.
A police official said while there was no organised ISIS infrastructure in the state, there were some who were influenced by it.
Four militants with alleged IS links killed in encounter with security forces in Jammu and Kashmir's Anantnag district
The sources said on a tip off about the presence of militants, Army, Special Operation Group (SOG) of Jammu and Kashmir police and CRPF launched a joint search operation at Khiram in Anantnag.
Earlier in the day, two police personnel were killed and three others were injured in a terrorist attack in Jammu and Kashmir's Pulwama district.
This comes a day after militants fired at an army patrol party in jungles of Panhar area of Bandipora district.
Militants carried out two grenade attacks today in Anantnag and Pulwama districts of Jammu and Kashmir, including at the residence of ruling PDP MLA Mushtaq Shah.
Residential guard was attacked by terrorists at Thajiwara in Anantnag, and the alert sentry retaliated the fire.