Police say three militants and an Indian army soldier have been killed in a gunbattle in disputed Kashmir.

Police said Tuesday that government forces killed the three insurgents overnight following a raid in southern Aglar village.

As the fighting raged, hundreds of residents demonstrated in solidarity with the rebels and clashed with government forces to try to help the militants escape.

At least two civilians were injured in the clashes.

Police said one of the slain militants was a nephew of a top Pakistani militant leader. Pakistan has rejected Indian accusations that it arms rebels fighting in Kashmir.

Kashmir is divided between India and Pakistan and both countries claim it in its entirety. Rebel groups have been fighting since 1989 against Indian rule.