Pathankot (Punjab), Jan 3 (IANS): Security agencies are engaged in a gunfight with two terrorists, Punjab Deputy Chief Minister Sukhbir Singh Badal said on Sunday afternoon, adding the counter offensive at the IAF base here was still on.

"At the moment, even still now, the operation is still going on. There are at least two people," Badal told the media here. "They (security forces) are engaging two people at the moment."

The statement came amid uncertainty on the number of terrorists killed at the base.

Gunshots and blasts were heard inside the Indian Air Force (IAF) base again on Sunday morning and afternoon.

National Security Guards (NSG) officer, Lt Col. Niranjan, was killed in a blast during mopping operations on Sunday.

Four of the terrorists who stormed the sprawling IAF base on Pathankot's outskirts were killed on Saturday after they killed three Indian Air Force (IAF) personnel in the pre-dawn suicide attack.

Seven security personnel have lost their lives in the terror attack.