Srinagar, Kashmir - Four people, including two civilians and an army officer, were killed Wednesday in India-administered Kashmir by suspected Islamic militants who had infiltrated across the border from Pakistan, police said.

At least six people, including four children, had been taken hostage by a group of three to four militants who were holed up in a house on the outskirts of Jammu city, the winter capital of the northern state of Jammu and Kashmir, said Mohinder Singh, senior superintendent of the Jammu police.

The area surrounding the house in the Bantalab area had been cordoned off and an exchange of fire between security forces and the militants was continuing, Singh said.

He said one militant had been killed and one woman hostage had been rescued.

Residents in the area were being evacuated and a search was on for more militants who might be hiding in the area, Singh said.

Indian authorities said they believed the militants sneaked into Indian territory Tuesday under cover of fire from the Pakistani side of the border about 10 kilometres west of Jammu city.

The Indian Army officer and another soldier was killed and two troopers were injured when the militants, dressed in khaki clothes resembling police uniforms, attacked a security checkpost Wednesday morning in the crowded Mishriwala area on the outskirts of the city, police said.

The security forces retaliated, but the militants managed to escape in an autorickshaw after killing its driver. They later gunned down another civilian and injured two labourers before holing up in the house in Bantalab, police said.

More than 40,000 people - including militants, civilians and security forces - have been killed in Jammu and Kashmir since a violent separatist movement peaked in the late 
1980s, according to official figures. Independent agencies put the toll at 60,000.

India has accused neighbouring Pakistan of aiding and abetting Kashmiri militants. Pakistan denies the charge and says they are freedom fighters.

India and Pakistan have fought two wars over the disputed Kashmir region. Currently, the two countries are engaged in talks to resolve several differences, including those over Kashmir. (dpa)