A senior police official said that the gunfight started again from the under construction mini secretariat building in Poonch town, the site of Sunday's firing.

"The building and adjacent areas were surrounded and exchange of fire were continuing between the security forces and some surviving militants still holed up in the building," the official said.

The victims comprised three terrorists and a policeman, while five others -- a police official, a civilian and three soldiers -- were injured. In another incident, 4 Pakistanis were killed at the Line of Control (LoC) in Nowgam sector during an alleged infiltration bid on Sunday.

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(With agency inputs)