SRINAGAR, Jan 31: Three militants were killed in a shootout with Indian forces in occupied Kashmir after taking refuge in a mosque, the army said on Saturday.

The militants had been hiding in the mosque in Danispora village, Badgam district, about 40kms northwest of Srinagar, and were surrounded by soldiers acting on a tipoff, an Indian army spokesman said.

"They were asked to surrender but they opened fire. In the encounter, all three were killed. There is some damage to the mosque also," the spokesman said, adding the three were members of the Hizbul Mujahideen.

Two Indian army soldiers were injured during the encounter, which lasted more than five hours.

The spokesman said the militants fled into the mosque when soldiers, backed by police, ringed the village.

"The fighting has ended but the search-out operation is continuing in and around the mosque," he added.

There have been many a mosque sieges in Kashmir, and at times militants have been given safe passage to prevent the destruction of religious places.

A Muslim civilian was killed during an exchange of fire between militants and Indian troops in the neighbouring village of Berewa, a police spokesman said.-AFP