Officials have reported an exchange of fire between the army and two suspected terrorists in a village along the Jammu-Kishtwar national highway on Saturday, following which a massive search was launched.

The terrorists fired at a quick-reaction team of the army after the driver of a civilian vehicle informed the force about the presence of two suspicious persons on the highway in Ramban district, leading to a brief exchange of fire, they said.

'Today (Saturday) morning, about 7.30 am, two suspicious individuals tried to stop a civilian vehicle at... Batote on the highway. The driver was alert, did not stop the vehicle and rushed and informed the nearest army post,' an army official said. 'An exchange of fire took place and further details are awaited,' he added.

The officials said the terrorists hurled a grenade and fired after noticing the team of the army in Dharmund village.

Reinforcements have been sent to the spot and the area has been cordoned off, they said.

There was no immediate report of casualty.

The movement of the traffic on the highway was stopped as a precaution, the officials said.