Senior police officer S.P. Pani said militants sprayed gunfire at the police vehicle in the southern Achabal area.
The militants were engaged in a fire-fight with forces for several hours.
Earlier, a civilian identified as Mohammad Ashraf Khar (34) was killed in the crossfire between the forces and the militants. Mattoo, who carries a bounty of Rs 10 lakh on his head, and two other local Lashkar operatives were holed up in two houses in Bijbihara. As the operation was being carried out by the forces, some Kashmiri youths assembled there and tried heckling the operation by pelting stones which resulted in clashes. It's unclear if the killed civilians were part of the protests. Buran Wani's close aid Sabzar Ahmad Bhat was the second militant who was killed in an encounter on May 27 last month. A resident of Khudwan village in Kulgam, Mattoo is joined LeT at the age of 18 and has been an active commander for the past two years. Junaid Mattoo was put in the list of 12 most wanted terrorists in the Valley right now by the Army.
A young man and a teenager were killed after being hit by bullets, and several others were left wounded. After which all the injured policemen were shifted to hospital where doctors declared them as dead.
Officials said two civilians were injured during the incident and are undergoing treatment at a hospital, Greater Kashmir reported.
The terrorists decamped with the rifles and ammunition that the police party was carrying.
Six police personnel have been martyred in a terror attack at Jammu and Kashmir.
The slain policemen have been identified as Feroz Ahmed Dar of Dogripora, Pulwama; constable Shariq Ahmed; constable Tasveer Ahmed (both from Budgam); constable Sharaz Ahmed (Achabal); Mohammed Asif and Sabzar Ahmed of Anantnag.