An Army captain was killed and four terrorists are gunned down in an ongoing operation in the higher reaches of Jammu region's Doda district on Wednesday, officials said. A civilian was also injured in the encounter that broke out a day ahead of Independence Day and is the latest in a series of incidents in Jammu region that has witnessed a spike in violence.

Bullets rang out in a thickly forested area during a cordon and search operation (CASO) launched by a joint team to track down a group of foreign terrorists hiding in the Shivgarh-Assar belt, officials said.

The young captain was critically injured and shifted to a military hospital where he breathed his last, they said.

Four blood-soaked rucksacks were recovered from the site, leading officials to believe that four terrorists were killed. M-4 carbines were also found, the officials said.

The terrorists are holed up near a river in Assar, an official said.

The Army, however, maintained on its official X handle that an officer was injured.

"Search for the terrorists continues amidst heavy firefight. One officer has been injured while leading the search party. War like stores have been recovered as operations continue," the White Knight Corps said in a post.

The terrorists crossed into Doda from a forest near Patnitop in adjacent Udhampur district after a brief exchange of fire between security forces and terrorists there, officials said.

According to officials, security forces established contact with the terrorists around 6 pm in Udhampur on Tuesday. The encounter began about half an hour later and continued intermittently until both sides paused. A cordon was established overnight.

The search was resumed at daylight. At about 7.30 am today, there was a renewed exchange of fire, officials said.

(With Inputs From Agencies)