Militants attacked an army camp in India-administered Kashmir on Sunday night killing one border guard, according to local police.
A group of up to four militants opened fire and threw grenades near an army camp in Baramulla district, area police chief Imtiyaz Hussain told reporters.
A guard from the Border Security Force unit adjoining the army camp was killed and another was injured in a gunbattle that continued for more than two hours, he said.
"Our forces were able to prevent the militants from entering the camp. The militants fled under the cover of darkness. The area has been cordoned off for search operations," Hussain said.
Pakistani foreign affairs advisor Sartaj Aziz told Pakistani media that Indian and Pakistani national security officials had spoken Monday by phone and agreed to reduce tensions along their border.
But Pakistani forces were continuing to target Indian posts along the border, Indian broadcaster NDTV reported, quoting defence sources.
On September 18, militants stormed an army base in Uri, also in Baramulla district killing 19 Indian soldiers.
Since then, the Indian Army carried out retaliatory "surgical strikes" against militants in Pakistan-controlled Kashmir on September 29, claiming to have inflicted significant casualties.
Pakistan denied that the strikes took place, calling it "cross-border" firing.
Both India and Pakistan claim Kashmir in its entirety and have fought two wars over it since their independence from Britain in 1947.