Police say rebels fighting against Indian rule in disputed Kashmir have launched an attack on paramilitary soldiers, killing three. One militant also died in the fighting.

Police say at least two militants in a car approached soldiers patrolling streets in the southern town of Anantnag on Wednesday and jumped out while firing at them. The soldiers shot back and in the exchange of gunfire three soldiers and a militant were killed.

Three soldiers and a police officer were injured.

Police cordoned off the area and were looking for the second militant.

India and Pakistan claim the divided territory of Kashmir in its entirety. Rebels have been fighting against Indian control since 1989.