The Counter-Terrorism Department (CTD) of Punjab police claimed to have busted a 'big' cell of the Tehreek-e-Taliban Pakistan (TTP) in Sheikhupura on Wednesday.

Eight suspected TTP militants were killed in the intelligence-based operation (IBO) carried out by CTD in Narang area of Sheikhupura. Two CTD officials were injured in the shootout, a handout issued by the department's spokesman said.

The killed militants had planned to carry out a major terrorist plan in Lahore in the near future, the CTD said.

Acting on a lead, the CTD personnel detected the hideout at about 11:30pm on Wednesday and challenged the militants to surrender. In response the miliants opened "indiscriminate fire" at the security personnel, injuring two CTD men.

A shootout ensued when the CTD personnel retaliated in self-defence, the CTD said.

"When the firing stopped, eight terrorists were found dead killed by firing of their own accomplices."

Three to four suspected militants managed to escape "due to darkness" and efforts are being made to nab them, the handout said. An investigation has been started and the dead militants are being identified.

The CTD team also recovered weapons and explosives from the possession of the militants including more than three kilogrammes of explosives, prima cord, three Kalashnikov rifles, five pistols and ammunition.