Srinagar, May 3 (IANS): The stand-off between the holed up terrorists and the security forces continued on Sunday in Kupwara district although the operation against holed up terrorists was started early on Saturday.

The operation was initially started in Rajwar area of Handwara tehsil by the security forces including the Rashtriya Rifles (RR) and the special operations group (SOG) of local police.

This followed information that two to three terrorists were hiding in one of the houses in Chanjimulla village, 15 km from Handwara town.

After surrounding the hideout and plugging all escape routes, the terrorists hiding in the house were challenged and subsequently engaged in sustained gunfire.

Sources said an army Colonel, a major and two other soldiers in addition to a sub-inspector and a constable of the SOG decided to challenge the holed up terrorists through room intervention braving great danger to their lives.

Last reports said there was a fierce exchange of gunfire between the intervening security personnel and the hiding terrorists.

"Since last one and a half hour there has been no exchange of firing at the encounter site.

"Para commandos of 9 Para regiment have been brought in to secure the security personnel and preparations are underway for the final assault," sources said.

Army and police have cautioned reporters not to speculate about the final outcome of the operation since it is still continuing.

Security forces have strongly dispelled speculative reports about the safety of the security personnel who chose to embark on room intervention of the house where the terrorists were holed up.

Reports now suggest the number of the holed up terrorists could be more than three.

"One dead body is lying outside the house where the terrorists are holed up, but its identification can only be made after the operation ends," a source said.