Clashes have erupted in Indian-controlled Kashmir after police fired tear gas to stop thousands of people from marching in the funeral procession of a rebel commander killed in a clash with government forces.

Police Inspector-General Syed Javaid Mujtaba Gillani said the militant, Sajad Ahmed Bhat, was killed in the clash Monday night on the outskirts of Srinagar, the main city in the disputed Himalayan region.

On Tuesday, thousands of people chanting slogans against Indian rule assembled in the militant's home village and tried to march on the highway connecting the region with the rest of India while carrying his body for burial.