One policeman has been martyred and at least one terrorist killed in an intelligence-based operation in Hayatabad's Phase 7 area of Peshawar, DawnNewsTV reported on Monday citing Khyber Pakhtunkhwa Information Minister Shaukat Yousafzai.

"The police had received information that some terrorists are in a house in Hayatabad," Yousafzai said. "A timely operation was conducted soon after, and the entire area, including the said house, was cordoned off."

The police said that the militants were hiding in a house and firing from the inside, adding that the operation lasted for two hours, following which the forces moved in to get the house cleared.

"One of our officials has been martyred," said Capital City Police Officer (CCPO) Qazi Jameelur Rahman, who supervised the operation. "One of the terrorists has also been killed."

Peshawar senior superintendent of police (SSP) Operations Zahoor Afridi said that the number of casualties on the militants' side could be higher.

With additional reporting by Ali Akbar