A Srinagar based police spokesman said Umer Majeed was involved in a grenade attack on security forces at Yaripora and many firing incidents including Yaripora and Kanjikullah. Three others, including a captain, have been injured, the police said.
Yatoo was one of the longest serving militants in the Valley.
Residents said that locals rushed out of their homes to protest and pelt stones on the forces as soon as firing started. Itoo was held responsible for instigating the violence in the Valley after the killing of militant Burhan Wani past year.
The operation to eliminate the terrorists began on Saturday, after the agencies received information about their hiding in Awnira village. "Five army personnel were injured during the encounter and were shifted to hospital for treatment".More news: Wall St rises on inflation data but on track for weekly losses
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Since January the police and the army have killed four top militant commanders having enormous operational capabilities.
On Saturday afternoon, the Army, police and CRPF had launched the operation in Awneera hamlet, around 15 km from Shopian town, after receiving inputs about the presence of militants. Two soldiers later succumbed to injuries.
Rising Kashmir has learnt that dozen of people have also sustained pellet injuries during the overnight clashes wth the state government forces.
Meanwhile, the internet services have been reportedly snapped in district Budgam.
The cordon and search operation was later called off as the militants managed to escape from the area.